Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 28, 2014 | Jun. 30, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'VRS | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 53,196,427 | ' |
Entity Public Float | ' | ' | $18,985,717 |
Entity Registrant Name | 'VERSO PAPER CORP. | ' | ' |
Entity Central Index Key | '0001421182 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' |
VERSO PAPER HOLDINGS LLC | ' | ' | ' |
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'VERSO PAPER HOLDINGS LLC | ' | ' |
Entity Central Index Key | '0001395864 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Current assets: | ' | ' | ||
Cash and cash equivalents | $11,295 | $61,525 | ||
Accounts receivable, net | 104,498 | 100,888 | ||
Inventories | 137,687 | 131,467 | ||
Assets held for sale | 50 | 24,867 | ||
Prepaid expenses and other assets | 20,621 | 4,026 | ||
Total current assets | 274,151 | 322,773 | ||
Property, plant, and equipment, net | 742,946 | 793,031 | ||
Intangibles and other assets, net | 81,455 | 93,127 | ||
Total assets | 1,098,552 | 1,208,931 | ||
Current liabilities: | ' | ' | ||
Accounts payable | 88,412 | 92,079 | ||
Accrued liabilities | 122,335 | 120,180 | ||
Current maturities of long-term debt | 13,310 | 8,501 | ||
Liabilities related to assets held for sale | 0 | 176 | ||
Total current liabilities | 224,057 | 220,936 | ||
Long-term debt | 1,235,167 | 1,248,458 | ||
Other liabilities | 56,599 | 61,223 | ||
Total liabilities | 1,515,823 | 1,530,617 | ||
Commitments and contingencies (Note 19) | 0 | 0 | ||
Equity: | ' | ' | ||
Preferred stock -- par value $0.01 (20,000,000 shares authorized, no shares issued) | 0 | 0 | ||
Common stock -- par value $0.01 (250,000,000 shares authorized with 53,246,715 shares issued and 53,172,484 outstanding on December 31, 2013, and with 52,951,379 shares issued and 52,896,374 outstanding on December 31, 2012) | 533 | 530 | ||
Treasury stock -- at cost (74,231 shares on December 31, 2013 and 55,005 shares on December 31, 2012) | -106 | -84 | ||
Paid-in-capital | 220,960 | 219,158 | ||
Retained deficit | -627,223 | -516,017 | ||
Accumulated other comprehensive loss | -11,435 | -25,273 | ||
Total deficit | -417,271 | -321,686 | ||
Total liabilities and equity | 1,098,552 | 1,208,931 | ||
VERSO PAPER HOLDINGS LLC | ' | ' | ||
Current assets: | ' | ' | ||
Cash and cash equivalents | 11,240 | 61,470 | ||
Accounts receivable, net | 104,624 | 101,014 | ||
Inventories | 137,687 | 131,467 | ||
Assets held for sale | 50 | 24,867 | ||
Prepaid expenses and other assets | 20,621 | 3,996 | ||
Total current assets | 274,222 | 322,814 | ||
Property, plant, and equipment, net | 742,946 | 793,031 | ||
Intangibles and other assets, net | 104,760 | [1] | 116,432 | [1] |
Total assets | 1,121,928 | 1,232,277 | ||
Current liabilities: | ' | ' | ||
Accounts payable | 88,412 | 92,079 | ||
Accrued liabilities | 122,435 | 119,121 | ||
Current maturities of long-term debt | 13,310 | 0 | ||
Liabilities related to assets held for sale | 0 | 176 | ||
Total current liabilities | 224,157 | 211,376 | ||
Long-term debt | 1,258,472 | [2] | 1,187,052 | [2] |
Other liabilities | 50,425 | 54,448 | ||
Total liabilities | 1,533,054 | 1,452,876 | ||
Commitments and contingencies (Note 19) | 0 | 0 | ||
Equity: | ' | ' | ||
Members' Capital | 231,489 | 324,562 | ||
Retained deficit | -631,180 | -519,888 | ||
Accumulated other comprehensive loss | -11,435 | -25,273 | ||
Total deficit | -411,126 | -220,599 | ||
Total liabilities and equity | $1,121,928 | $1,232,277 | ||
[1] | Intangibles and other assets, net of Guarantor Subsidiaries includes $23.3 million of a long-term note receivable from Verso Finance. | |||
[2] | Long-term debt of Non-Guarantor Affiliate is payable to Verso Finance. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 53,246,715 | 52,951,379 |
Common stock, shares outstanding | 53,172,484 | 52,896,374 |
Treasury stock, shares | 74,231 | 55,005 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net sales | $1,388,899 | $1,474,612 | $1,722,489 |
Costs and expenses: | ' | ' | ' |
Cost of products sold - (exclusive of depreciation, amortization, and depletion) | 1,179,085 | 1,272,630 | 1,460,290 |
Depreciation, amortization, and depletion | 104,730 | 118,178 | 125,295 |
Selling, general, and administrative expenses | 73,777 | 74,415 | 78,059 |
Goodwill impairment | 0 | 0 | 18,695 |
Restructuring charges | 1,378 | 102,404 | 24,464 |
Total operating expenses | 1,358,970 | 1,567,627 | 1,706,803 |
Other operating income | -3,971 | -60,594 | 0 |
Operating income (loss) | 33,900 | -32,421 | 15,686 |
Interest income | -25 | -8 | -99 |
Interest expense | 137,728 | 135,461 | 126,607 |
Other loss, net | 7,965 | 7,379 | 26,042 |
Loss before income taxes | -111,768 | -175,253 | -136,864 |
Income tax (benefit) expense | -562 | -1,424 | 197 |
Net loss | -111,206 | -173,829 | -137,061 |
Loss per common share | ' | ' | ' |
Basic (usd per share) | ($2.09) | ($3.29) | ($2.61) |
Diluted (usd per share) | ($2.09) | ($3.29) | ($2.61) |
Weighted average common shares outstanding | ' | ' | ' |
Basic (in shares) | 53,124 | 52,850 | 52,595 |
Diluted (in shares) | 53,124 | 52,850 | 52,595 |
VERSO PAPER HOLDINGS LLC | ' | ' | ' |
Net sales | 1,388,899 | 1,474,612 | 1,722,489 |
Costs and expenses: | ' | ' | ' |
Cost of products sold - (exclusive of depreciation, amortization, and depletion) | 1,179,085 | 1,272,630 | 1,460,290 |
Depreciation, amortization, and depletion | 104,730 | 118,178 | 125,295 |
Selling, general, and administrative expenses | 73,777 | 74,364 | 78,007 |
Goodwill impairment | 0 | 0 | 10,551 |
Restructuring charges | 1,378 | 102,404 | 24,464 |
Total operating expenses | 1,358,970 | 1,567,576 | 1,698,607 |
Other operating income | -3,971 | -60,594 | ' |
Operating income (loss) | 33,900 | -32,370 | 23,882 |
Interest income | -1,539 | -1,523 | -1,614 |
Interest expense | 138,626 | 127,943 | 122,213 |
Other loss, net | 7,965 | 7,380 | 25,812 |
Loss before income taxes | -111,152 | -166,170 | -122,529 |
Net loss | ($111,152) | ($166,170) | ($122,529) |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net loss | ($111,206) | ($173,829) | ($137,061) |
Derivative financial instruments: | ' | ' | ' |
Effective portion of net unrealized losses | 0 | -1,365 | -5,188 |
Reclassification from accumulated other comprehensive loss to net income (loss) | 335 | 5,856 | 2,838 |
Defined benefit pension plan: | ' | ' | ' |
Pension liability adjustment | 11,221 | -4,185 | -12,079 |
Amortization of net loss and prior service cost | 2,282 | 2,960 | 2,002 |
Other | 0 | 119 | 23 |
Other comprehensive income (loss) | 13,838 | 3,385 | -12,404 |
Comprehensive loss | -97,368 | -170,444 | -149,465 |
VERSO PAPER HOLDINGS LLC | ' | ' | ' |
Net loss | -111,152 | -166,170 | -122,529 |
Derivative financial instruments: | ' | ' | ' |
Effective portion of net unrealized losses | 0 | -1,365 | -5,188 |
Reclassification from accumulated other comprehensive loss to net income (loss) | 335 | 5,856 | 2,838 |
Defined benefit pension plan: | ' | ' | ' |
Pension liability adjustment | 11,221 | -4,185 | -12,079 |
Amortization of net loss and prior service cost | 2,282 | 2,960 | 2,002 |
Other | 0 | 119 | 23 |
Other comprehensive income (loss) | 13,838 | 3,385 | -12,404 |
Comprehensive loss | ($97,314) | ($162,785) | ($134,933) |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' AND MEMBER'S EQUITY (USD $) | Total | VERSO PAPER HOLDINGS LLC | Common Stock | Treasury Stock | Paid-in Capital | Paid-in Capital | Retained Deficit | Retained Deficit | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) |
In Thousands, except Share data | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | |||||||
Member's Equity Beginning of Period at Dec. 31, 2010 | ' | $71,417 | ' | ' | ' | $318,690 | ' | ($231,019) | ' | ($16,254) |
Stockholders' Equity Beginning of Period at Dec. 31, 2010 | -6,806 | ' | 525 | 0 | 214,050 | ' | -205,127 | ' | -16,254 | ' |
Treasury Stock, Shares at Dec. 31, 2010 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' |
Common Stock, Shares, Issued at Dec. 31, 2010 | ' | ' | 52,467,000 | ' | ' | ' | ' | ' | ' | ' |
Cash distributions | ' | -88 | ' | ' | ' | ' | ' | -88 | ' | ' |
Net loss | -137,061 | -122,529 | ' | ' | ' | ' | -137,061 | -122,529 | ' | ' |
Other comprehensive income (loss) | -12,404 | -12,404 | ' | ' | ' | ' | ' | ' | -12,404 | -12,404 |
Common stock issued for restricted stock, net | ' | ' | 1 | ' | -1 | ' | ' | ' | ' | ' |
Common stock issued for restricted stock, net | -53 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued for restricted stock, net | ' | ' | ' | -53 | ' | ' | ' | ' | ' | ' |
Stock option exercise | 16 | ' | ' | ' | 16 | ' | ' | ' | ' | ' |
Equity award expense | 2,420 | 2,420 | ' | ' | 2,420 | 2,420 | ' | ' | ' | ' |
Common stock issued for restricted stock, net (in shares) | ' | ' | 158,000 | ' | ' | ' | ' | ' | ' | ' |
Stock option exercise (in shares) | ' | ' | 6,000 | ' | ' | ' | ' | ' | ' | ' |
Common stock issued for restricted stock, net (in shares) | ' | ' | ' | -26,000 | ' | ' | ' | ' | ' | ' |
Member's Equity End of Period at Dec. 31, 2011 | ' | -61,184 | ' | ' | ' | 321,110 | ' | -353,636 | ' | -28,658 |
Stockholders' Equity End of Period at Dec. 31, 2011 | -153,888 | ' | 526 | -53 | 216,485 | ' | -342,188 | ' | -28,658 | ' |
Treasury Stock, Shares at Dec. 31, 2011 | ' | ' | ' | -26,000 | ' | ' | ' | ' | ' | ' |
Common Stock, Shares, Issued at Dec. 31, 2011 | ' | ' | 52,631,000 | ' | ' | ' | ' | ' | ' | ' |
Cash distributions | ' | -82 | ' | ' | ' | ' | ' | -82 | ' | ' |
Contribution from parent (Return of capital) | ' | 776 | ' | ' | ' | 776 | ' | ' | ' | ' |
Net loss | -173,829 | -166,170 | ' | ' | ' | ' | -173,829 | -166,170 | ' | ' |
Other comprehensive income (loss) | 3,385 | 3,385 | ' | ' | ' | ' | ' | ' | 3,385 | 3,385 |
Common stock issued for restricted stock, net | ' | ' | 4 | ' | -4 | ' | ' | ' | ' | ' |
Common stock issued for restricted stock, net | -31 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued for restricted stock, net | ' | ' | ' | -31 | ' | ' | ' | ' | ' | ' |
Equity award expense | 2,677 | 2,676 | ' | ' | 2,677 | 2,676 | ' | ' | ' | ' |
Common stock issued for restricted stock, net (in shares) | ' | ' | 320,000 | ' | ' | ' | ' | ' | ' | ' |
Common stock issued for restricted stock, net (in shares) | ' | ' | ' | -29,000 | ' | ' | ' | ' | ' | ' |
Member's Equity End of Period at Dec. 31, 2012 | ' | -220,599 | ' | ' | ' | 324,562 | ' | -519,888 | ' | -25,273 |
Stockholders' Equity End of Period at Dec. 31, 2012 | -321,686 | ' | 530 | -84 | 219,158 | ' | -516,017 | ' | -25,273 | ' |
Treasury Stock, Shares at Dec. 31, 2012 | -55,005 | ' | ' | -55,000 | ' | ' | ' | ' | ' | ' |
Common Stock, Shares, Issued at Dec. 31, 2012 | 52,951,379 | ' | 52,951,000 | ' | ' | ' | ' | ' | ' | ' |
Cash distributions | ' | -140 | ' | ' | ' | ' | ' | -140 | ' | ' |
Contribution from parent (Return of capital) | ' | -94,878 | ' | ' | ' | -94,878 | ' | ' | ' | ' |
Net loss | -111,206 | -111,152 | ' | ' | ' | ' | -111,206 | -111,152 | ' | ' |
Other comprehensive income (loss) | 13,838 | 13,838 | ' | ' | ' | ' | ' | ' | 13,838 | 13,838 |
Common stock issued for restricted stock, net | ' | ' | 3 | ' | -3 | ' | ' | ' | ' | ' |
Common stock issued for restricted stock, net | -22 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued for restricted stock, net | ' | ' | ' | -22 | ' | ' | ' | ' | ' | ' |
Equity award expense | 1,805 | 1,805 | ' | ' | 1,805 | 1,805 | ' | ' | ' | ' |
Common stock issued for restricted stock, net (in shares) | ' | ' | 296,000 | ' | ' | ' | ' | ' | ' | ' |
Common stock issued for restricted stock, net (in shares) | ' | ' | ' | -19,000 | ' | ' | ' | ' | ' | ' |
Member's Equity End of Period at Dec. 31, 2013 | ' | -411,126 | ' | ' | ' | 231,489 | ' | -631,180 | ' | -11,435 |
Stockholders' Equity End of Period at Dec. 31, 2013 | ($417,271) | ' | $533 | ($106) | $220,960 | ' | ($627,223) | ' | ($11,435) | ' |
Treasury Stock, Shares at Dec. 31, 2013 | -74,231 | ' | ' | -74,000 | ' | ' | ' | ' | ' | ' |
Common Stock, Shares, Issued at Dec. 31, 2013 | 53,246,715 | ' | 53,247,000 | ' | ' | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||
VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | ||||||||||
Cash Flows From Operating Activities: | ' | ' | ' | ' | ' | ' | ||||||
Net loss | ($111,206) | ($173,829) | ($137,061) | ($111,152) | ($166,170) | ($122,529) | ||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' | ' | ' | ' | ||||||
Depreciation, amortization, and depletion | 104,730 | 118,178 | 132,363 | 104,730 | 118,178 | 132,363 | ||||||
Restructuring charges | 0 | 77,376 | 0 | 0 | 77,376 | 0 | ||||||
Loss on early extinguishment of debt, net | 0 | 8,244 | 26,091 | 0 | 8,244 | 26,091 | ||||||
Amortization of debt issuance costs | 5,398 | [1] | 5,317 | [1] | 5,396 | [1] | 5,368 | [1] | 4,957 | [1] | 5,036 | [1] |
Accretion of discount on long-term debt | 572 | 1,421 | 4,101 | 572 | 1,421 | 4,101 | ||||||
Equity award expense | 1,805 | 2,677 | 2,420 | 1,805 | 2,676 | 2,420 | ||||||
(Gain) loss on disposal of assets | -4,021 | -45,742 | 323 | -4,021 | -45,742 | 323 | ||||||
Goodwill impairment | 0 | 0 | 18,695 | 0 | 0 | 10,551 | ||||||
Other - net | 808 | -4,992 | -6,132 | 808 | -4,992 | -6,132 | ||||||
Changes in assets and liabilities: | ' | ' | ' | ' | ' | ' | ||||||
Accounts receivable | -3,610 | 27,199 | -21,078 | -3,610 | 27,199 | -21,201 | ||||||
Inventories | -6,176 | 28,269 | -24,360 | -6,176 | 28,269 | -24,360 | ||||||
Prepaid expenses and other assets | 5,177 | -8,969 | -787 | 5,177 | -8,969 | -801 | ||||||
Accounts payable | -8,059 | -17,813 | -14,191 | -8,059 | -18,719 | -14,185 | ||||||
Accrued liabilities | -13,150 | -5,328 | 28,731 | -12,904 | -12,426 | 22,885 | ||||||
Net cash (used in) provided by operating activities | -27,732 | 12,008 | 14,511 | -27,462 | 11,302 | 14,562 | ||||||
Cash Flows From Investing Activities: | ' | ' | ' | ' | ' | ' | ||||||
Proceeds from insurance settlement | 0 | 51,003 | 0 | 0 | 51,003 | 0 | ||||||
Proceeds from sale of assets | 28,397 | 1,731 | 228 | 28,397 | 1,731 | 228 | ||||||
Transfers (to) from restricted cash, net | -1,492 | 106 | 23,839 | -1,492 | 106 | 23,839 | ||||||
Capital expenditures | -40,660 | -59,909 | -90,272 | -40,660 | -59,909 | -90,272 | ||||||
Net cash used in investing activities | -13,755 | -7,069 | -66,205 | -13,755 | -7,069 | -66,205 | ||||||
Cash Flows From Financing Activities: | ' | ' | ' | ' | ' | ' | ||||||
Borrowings on revolving credit facilities | 145,000 | 112,500 | 0 | 145,000 | 112,500 | 0 | ||||||
Payments on revolving credit facilities | -145,000 | -112,500 | 0 | -145,000 | -112,500 | 0 | ||||||
Proceeds from long-term debt | 0 | 341,191 | 394,618 | 0 | 341,191 | 394,618 | ||||||
Debt issuance costs | -220 | -24,459 | -10,800 | -220 | -24,459 | -10,800 | ||||||
Repayments of long-term debt | -8,501 | -354,984 | -389,998 | 0 | -354,984 | -389,998 | ||||||
Contribution from parent | ' | ' | ' | 0 | 776 | 0 | ||||||
Cash distributions | ' | ' | ' | -140 | -82 | -88 | ||||||
Return of capital | ' | ' | ' | -8,653 | 0 | 0 | ||||||
Acquisition of treasury stock | -22 | -31 | -53 | ' | ' | ' | ||||||
Proceeds from issuance of common stock | 0 | 0 | 16 | ' | ' | ' | ||||||
Net cash used in financing activities | -8,743 | -38,283 | -6,217 | -9,013 | -37,558 | -6,268 | ||||||
Change in cash and cash equivalents | -50,230 | -33,344 | -57,911 | -50,230 | -33,325 | -57,911 | ||||||
Cash and cash equivalents at beginning of period | 61,525 | 94,869 | 152,780 | 61,470 | 94,795 | 152,706 | ||||||
Cash and cash equivalents at end of period | 11,295 | 61,525 | 94,869 | 11,240 | 61,470 | 94,795 | ||||||
Total interest paid | 129,467 | 113,334 | 115,651 | 130,830 | 114,849 | 117,043 | ||||||
Total income taxes paid (received) | $118 | $153 | ($8) | ' | ' | ' | ||||||
[1] | (1) Amortization of debt issuance cost is included in interest expense. |
SUMMARY_OF_BUSINESS_AND_SIGNIF
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||||||
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Nature of Business — Within our organization, Verso Paper Corp. is the ultimate parent entity and the sole member of Verso Paper Finance Holdings One LLC, which is the sole member of Verso Paper Finance Holdings LLC, which is the sole member of Verso Paper Holdings LLC. As used in this report, the term “Verso Paper” refers to Verso Paper Corp.; the term “Verso Finance” refers to Verso Paper Finance Holdings LLC; the term “Verso Holdings” refers to Verso Paper Holdings LLC; and the term for any such entity includes its direct and indirect subsidiaries when referring to the entity’s consolidated financial condition or results. Unless otherwise noted, references to “Verso,” “we,” “us,” and “our” refer collectively to Verso Paper and Verso Holdings. Other than Verso Paper’s common stock transactions, Verso Finance’s debt obligation and related financing costs and interest expense, Verso Holdings’ loan to Verso Finance, and the debt obligation of Verso Holdings’ consolidated variable interest entity to Verso Finance, the assets, liabilities, income, expenses and cash flows presented for all periods represent those of Verso Holdings in all material respects. Unless otherwise noted, the information provided pertains to both Verso Paper and Verso Holdings. | ||||||||||||
We began operations on August 1, 2006, when we acquired the assets and certain liabilities comprising the business of the Coated and Supercalendered Papers Division of International Paper Company, or “International Paper.” We were formed by affiliates of Apollo Global Management, LLC, or “Apollo,” for the purpose of consummating the acquisition from International Paper, or the “Acquisition.” Verso Paper went public on May 14, 2008, with an initial public offering, or “IPO,” of 14 million shares of common stock. | ||||||||||||
We operate in the following three market segments: coated papers; hardwood market pulp; and other, consisting of specialty papers. Our core business platform is as a producer of coated freesheet and coated groundwood papers. Our products are used primarily in media and marketing applications, including catalogs, magazines, and commercial printing applications such as high-end advertising brochures, annual reports, and direct-mail advertising. | ||||||||||||
Basis of Presentation —This report contains the consolidated financial statements of Verso Paper and Verso Holdings as of December 31, 2013 and 2012, and for the years ended December 31, 2013, 2012, and 2011. Variable interest entities for which Verso Paper or Verso Holdings is the primary beneficiary are also consolidated. Intercompany balances and transactions are eliminated in consolidation. | ||||||||||||
Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, or “GAAP,” requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. | ||||||||||||
Revenue Recognition — Sales are net of rebates, allowances, and discounts. Revenue is recognized when the customer takes title and assumes the risks and rewards of ownership, in accordance with Financial Accounting Standards Board, or “FASB,” Accounting Standards Codification, or “ASC,” Topic 605, Revenue Recognition. Revenue is recorded at the time of shipment for terms designated f.o.b., or "free on board," shipping point. For sales transactions designated f.o.b. destination, revenue is recorded when the product is delivered to the customer’s site and when title and risk of loss are transferred. | ||||||||||||
Shipping and Handling Costs — Shipping and handling costs, such as freight to customer destinations, are included in Cost of products sold in the accompanying consolidated statements of operations. These costs, when included in the sales price charged for our products, are recognized in Net sales. | ||||||||||||
Planned Maintenance Costs — Maintenance costs for major planned maintenance shutdowns in excess of $0.5 million are deferred over the period in which the maintenance shutdowns occur and expensed ratably over the period until the next major planned shutdown, since we believe that operations benefit throughout that period from the maintenance work performed. Other maintenance costs are expensed as incurred. | ||||||||||||
Environmental Costs and Obligations — Costs associated with environmental obligations, such as remediation or closure costs, are accrued when such costs are probable and reasonably estimable. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental obligations are discounted to their present value when the expected cash flows are reliably determinable. | ||||||||||||
Equity Compensation — We account for equity awards in accordance with ASC Topic 718, Compensation – Stock Compensation. ASC Topic 718 requires employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at the grant date based on the fair value of the award. We use the straight-line attribution method to recognize share-based compensation over the service period of the award. | ||||||||||||
Income Taxes — Verso Paper accounts for income taxes using the liability method pursuant to ASC Topic 740, Income Taxes. Under this method, Verso Paper recognizes deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts using enacted tax rates in effect for the year the differences are expected to reverse. Verso Paper records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. Verso Paper evaluates uncertain tax positions annually and considers whether the amounts recorded for income taxes are adequate to address Verso Paper’s tax risk profile. Verso Paper analyzes the potential tax liabilities of specific transactions and tax positions based on management’s judgment as to the expected outcome. Verso Holdings is a limited liability corporation and is not subject to federal income taxes. Verso Holdings accounts for its state income taxes in accordance with ASC Topic 740. | ||||||||||||
Earnings Per Share — Verso Paper computes earnings per share by dividing net income or net loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income or net loss by the weighted average number of shares outstanding, after giving effect to potentially dilutive common share equivalents outstanding during the period. Potentially dilutive common share equivalents are not included in the computation of diluted earnings per share if they are anti-dilutive. | ||||||||||||
Fair Value of Financial Instruments — The carrying amounts for cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities, and amounts receivable from or due to related parties approximate fair value due to the short maturity of these instruments. We determine the fair value of our debt based on market information and a review of prices and terms available for similar obligations. See also Note 8, Note 11, Note 14, and Note 15 for additional information regarding the fair value of financial instruments. | ||||||||||||
Cash and Cash Equivalents — Cash and cash equivalents can include highly liquid investments with a maturity of three months or less at the date of purchase. | ||||||||||||
Inventories and Replacement Parts and Other Supplies — Inventory values include all costs directly associated with manufacturing products: materials, labor, and manufacturing overhead. These values are presented at the lower of cost or market. Costs of raw materials, work-in-progress, and finished goods are determined using the first-in, first-out method. Replacement parts and other supplies are stated using the average cost method and are reflected in Inventories and Intangibles and other assets on the consolidated balance sheet (see also Note 3 and Note 6). | ||||||||||||
Property, Plant, and Equipment — Property, plant, and equipment is stated at cost, net of accumulated depreciation. Interest is capitalized on projects meeting certain criteria and is included in the cost of the assets. The capitalized interest is depreciated over the same useful lives as the related assets. Interest costs of $1.3 million and $3.5 million were capitalized, respectively, in 2013 and 2012. Expenditures for major repairs and improvements are capitalized, whereas normal repairs and maintenance are expensed as incurred. | ||||||||||||
Depreciation and amortization are computed using the straight-line method for all assets over the assets’ estimated useful lives. Estimated useful lives are as follows: | ||||||||||||
Years | ||||||||||||
Building | 20 - 40 | |||||||||||
Machinery and equipment | 20-Oct | |||||||||||
Furniture and office equipment | 10-Mar | |||||||||||
Computer hardware | 6-Mar | |||||||||||
Leasehold improvements | Over the terms of the lease or | |||||||||||
the useful life of the | ||||||||||||
improvements | ||||||||||||
Goodwill and Intangible Assets — We account for goodwill and other intangible assets in accordance with ASC Topic 350, Intangibles – Goodwill and Other. Intangible assets primarily consist of trademarks, customer-related intangible assets, and patents obtained through business acquisitions. The useful lives of trademarks were determined to be indefinite and, therefore, these assets are not amortized. Customer-related intangible assets are amortized over their estimated useful lives of approximately twenty-five years. Patents are amortized over their remaining legal lives of ten years. The impairment evaluation of the carrying amount of goodwill and other intangible assets with indefinite lives is conducted annually or more frequently if events or changes in circumstances indicate that an asset might be impaired. | ||||||||||||
Trademarks are evaluated by comparing their fair value to their carrying values. In performing our annual impairment test during the fourth quarter of 2013, we determined that the carrying value of our trademarks exceeded their fair value, and recognized an impairment charge of $1.6 million based on a projected reduction of revenues driven primarily by a decline in U.S. demand. The trademark impairment charge is included in Cost of products sold on our accompanying consolidated statement of operations for the year ended December 31, 2013. | ||||||||||||
During 2012, based on a projected reduction of revenue primarily as a result of a reduction in production capacity from the closure of the Sartell mill, we recognized a trademarks impairment charge of $3.7 million, which was included in Restructuring charges on our accompanying consolidated statements of operations. | ||||||||||||
Goodwill was evaluated at the reporting unit level and allocated to the “Coated” segment. The evaluation for goodwill impairment was performed by applying a two-step test. The first step was to compare the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit was less than its carrying amount, goodwill was considered impaired and the loss was measured by performing step two, which involved using a hypothetical purchase price allocation to determine the implied fair value of the goodwill and comparing it to the carrying value of the goodwill. An impairment loss was recognized to the extent the implied fair value of the goodwill was less than the carrying amount of the goodwill. In 2011, Verso Paper recognized a goodwill impairment charge of $18.7 million and Verso Holdings recognized a goodwill impairment charge of $10.5 million. | ||||||||||||
Impairment of Long-Lived Assets — Long-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances that indicate that the carrying value of the assets may not be recoverable, as measured by comparing their net book value to the estimated undiscounted future cash flows generated by their use. Impaired assets are recorded at estimated fair value, determined principally using discounted cash flows. | ||||||||||||
In 2012, based on a comprehensive assessment of the damage resulting from the fire and explosion at our former paper mill in Sartell, Minnesota, we recorded a fixed asset impairment charge of $66.5 million, which was included in Restructuring charges (see also Note 17) on our accompanying consolidated statements of operations. The impairment charge was calculated based on the excess of carrying value over the estimated fair value of the site, which was estimated based on preliminary negotiations with potential buyers received subsequent to our decision to shut down the mill. | ||||||||||||
Allowance for Doubtful Accounts — We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. We manage credit risk related to our trade accounts receivable by continually monitoring the creditworthiness of our customers to whom credit is granted in the normal course of business. Trade accounts receivable balances for sales to unaffiliated customers were approximately $100.7 million at December 31, 2013, compared to $97.0 million at December 31, 2012. | ||||||||||||
We establish our allowance for doubtful accounts based upon factors surrounding the credit risks of specific customers, historical trends, and other information. Based on this assessment, an allowance is maintained that represents what is believed to be ultimately uncollectible from such customers. The allowance for doubtful accounts was approximately $0.7 million at December 31, 2013, compared to $1.0 million at December 31, 2012. Bad debt expense was $0.3 million for the year ended December 31, 2013, compared to $0.1 million for the year ended December 31, 2012 and $0.2 million for the year ended December 31, 2011. | ||||||||||||
Deferred Financing Costs — We capitalize costs incurred in connection with borrowings or establishment of credit facilities. These costs are amortized as an adjustment to interest expense over the life of the borrowing or life of the credit facilities using the effective interest method. In the case of early debt principal repayments, we adjust the value of the corresponding deferred financing costs with a charge to interest expense, and similarly adjust the future amortization expense. | ||||||||||||
Asset Retirement Obligations — In accordance with ASC Topic 410, Asset Retirement and Environmental Obligations, a liability and an asset are recorded equal to the present value of the estimated costs associated with the retirement of long-lived assets where a legal or contractual obligation exists. The liability is accreted over time, and the asset is depreciated over its useful life. Our asset retirement obligations under this standard relate to closure and post-closure costs for landfills. Revisions to the liability could occur due to changes in the estimated costs or timing of closure or possible new federal or state regulations affecting the closure. | ||||||||||||
As of December 31, 2013 and 2012, we had $0.8 million of restricted cash included in Intangibles and other assets in the accompanying consolidated balance sheet related to an asset retirement obligation in the state of Michigan. This cash deposit is required by the state and may only be used for the future closure of a landfill. | ||||||||||||
The following table presents an analysis related to our asset retirement obligations included in Other liabilities in the accompanying consolidated balance sheets: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||
Asset retirement obligations, January 1 | $ | 11,854 | $ | 11,233 | ||||||||
Liabilities incurred | 1,546 | — | ||||||||||
Settlement of existing liabilities | (903 | ) | (449 | ) | ||||||||
Accretion expense | 887 | 827 | ||||||||||
Adjustment to existing liabilities | (190 | ) | 419 | |||||||||
Liabilities related to assets held for sale | — | (176 | ) | |||||||||
Asset retirement obligations | 13,194 | 11,854 | ||||||||||
Less: Current portion | (486 | ) | — | |||||||||
Non-current portion of asset retirement obligations, December 31 | $ | 12,708 | $ | 11,854 | ||||||||
In addition to the above obligations, we may be required to remove certain materials from our facilities or to remediate them in accordance with current regulations that govern the handling of certain hazardous or potentially hazardous materials. At this time, any such obligations have an indeterminate settlement date, and we believe that adequate information does not exist to reasonably estimate any such potential obligations. Accordingly, we will record a liability for such remediation when sufficient information becomes available to estimate the obligation. | ||||||||||||
Derivative Financial Instruments — Derivative financial instruments are recognized as assets or liabilities in the financial statements and measured at fair value. The effective portion of the changes in the fair value of derivative financial instruments that qualify and are designated as cash flow hedges are recorded in Accumulated other comprehensive loss. Changes in the fair value of derivative financial instruments that are entered into as economic hedges are recognized in current earnings. We use derivative financial instruments to manage our exposure to energy prices and interest rate risk. Effective April 1, 2012, management elected to de-designate the remaining energy swaps that had previously been designated as cash flow hedges and to discontinue hedge accounting prospectively. | ||||||||||||
Pension Benefits — Pension plans cover substantially all of our employees. The defined benefit plans are funded in conformity with the funding requirements of applicable government regulations. Prior service costs are amortized on a straight-line basis over the estimated remaining service periods of employees. Certain employees are covered by defined contribution plans. Our contributions to these plans are based on a percentage of employees’ compensation or employees’ contributions. These plans are funded on a current basis. | ||||||||||||
Accumulated Other Comprehensive Income (Loss) — The following table summarizes the changes in Accumulated other comprehensive income (loss) by balance type for the year ended December 31, 2013: | ||||||||||||
(Dollars in thousands) | Losses on Derivative Financial Instruments | Defined Benefit Pension Items | Total | |||||||||
Accumulated other comprehensive loss as of December 31, 2012 | $ | (335 | ) | $ | (24,938 | ) | $ | (25,273 | ) | |||
Amounts reclassified from accumulated other comprehensive income (loss) to Cost of products sold | 335 | 2,282 | 2,617 | |||||||||
Pension liability adjustment | — | 11,221 | 11,221 | |||||||||
Net decrease in other comprehensive loss | 335 | 13,503 | 13,838 | |||||||||
Accumulated other comprehensive income (loss), net of tax, as of December 31, 2013 | $ | — | $ | (11,435 | ) | $ | (11,435 | ) | ||||
RECENT_ACCOUNTING_DEVELOPMENTS
RECENT ACCOUNTING DEVELOPMENTS | 12 Months Ended |
Dec. 31, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
RECENT ACCOUNTING DEVELOPMENTS | ' |
RECENT ACCOUNTING DEVELOPMENTS | |
ASC Topic 220, Comprehensive Income. Accounting Standards Update, or “ASU,” No. 2013-02, Comprehensive Income (Topic 220), Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income was effective for fiscal years and interim periods beginning after December 15, 2012, which for us was the first quarter of 2013. The adoption of the provisions of ASU No. 2013-02 resulted in additional disclosure of the location within the statement of operations of amounts reclassified from other comprehensive income but had no impact on our financial condition, results of operations, or cash flows. | |
ASC Topic 350, Intangibles – Goodwill and Other. ASU No. 2012-02, Intangibles—Goodwill and Other (Topic 350), Testing Indefinite Lived Intangible Assets for Impairment, is intended to simplify the guidance for impairment testing of indefinite-lived intangible assets other than goodwill. Under the new guidance, an entity has the option to assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test. Entities electing to perform a qualitative assessment are no longer required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines, based on a qualitative assessment, that it is “more likely than not” that the asset is impaired. ASU No. 2012-02 was effective for annual and interim impairment tests performed in fiscal years beginning after September 15, 2012, which for us was March 31, 2013. The adoption of this guidance in the first quarter of 2013 did not have any impact on our consolidated financial statements. | |
ASC Topic 405, Obligations from Joint and Several Liability Arrangements. In February 2013, the FASB issued ASU 2013-04, Liabilities (Topic 405), Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date. This ASU defines how entities measure obligations from joint and several liability arrangements which are fixed at the reporting date and for which no U.S. GAAP guidance exists. The guidance also requires entities to disclose the nature, amount and other information about those obligations. The ASU is effective for periods beginning after December 15, 2013. Retrospective presentation for all comparative periods presented is required and early adoption is permitted. The adoption of this amendment is not expected to have a material impact on the presentation of our consolidated financial statements. | |
Other new accounting pronouncements issued but not effective until after December 31, 2013, are not expected to have a significant effect on our consolidated financial statements. |
INVENTORIES
INVENTORIES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
INVENTORIES | ' | |||||||
INVENTORIES | ||||||||
December 31, | ||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Raw materials | $ | 25,843 | $ | 25,747 | ||||
Woodyard logs | 6,602 | 5,942 | ||||||
Work-in-process | 14,738 | 17,629 | ||||||
Finished goods | 60,919 | 55,909 | ||||||
Replacement parts and other supplies | 29,585 | 26,240 | ||||||
Inventories | $ | 137,687 | $ | 131,467 | ||||
ASSETS_HELD_FOR_SALE_AND_INSUR
ASSETS HELD FOR SALE AND INSURANCE PROCEEDS | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Property, Plant and Equipment [Abstract] | ' | ||||||
ASSETS HELD FOR SALE AND INSURANCE PROCEEDS | ' | ||||||
ASSETS HELD FOR SALE AND INSURANCE PROCEEDS | |||||||
In 2012, our former paper mill in Sartell, Minnesota, was damaged by a fire and explosion. After a comprehensive assessment of the damage resulting from the fire and explosion, we announced the decision to permanently close the mill, and recorded non-cash impairment charges of $77.4 million as reflected in operating activities on our consolidated statement of cash flows for the year ended December 31, 2012. | |||||||
Also in 2012, we reached a final settlement agreement with our insurance provider for property and business losses resulting from the fire and explosion and recorded insurance proceeds in excess of fire related costs and property damages incurred of $60.6 million, which were recorded in Other operating income on our consolidated statement of operations for the year ended December 31, 2012. In addition, $51.0 million of proceeds attributable to property, plant, and equipment were reflected in investing activities on our consolidated statement of cash flows for the year ended December 31, 2012. At the close of 2012, management entered into a formal plan to sell the assets of the Sartell mill as well as Verso Fiber Farm, LLC, or, “Fiber Farm,” which was created to supply fiber to the Sartell mill. | |||||||
On February 28, 2013, we closed the sale of substantially all of the assets of Fiber Farm, and the related gain on sale is reflected in Other operating income in the accompanying consolidated statements of operations for the year ended December 31, 2013. In addition, the sale of substantially all of the assets at our Sartell mill closed on March 8, 2013 and the related gain is included in Other operating income in the accompanying consolidated statements of operations for the year ended December 31, 2013. | |||||||
Assets and liabilities held for sale at December 31, 2013 and 2012, respectively, were comprised of the following: | |||||||
December 31, | December 31, | ||||||
(Dollars in thousands) | 2013 | 2012 | |||||
Property, plant, and equipment, net (1) | $ | — | $ | 12,124 | |||
Reforestation (1) | 50 | 12,743 | |||||
Assets held for sale | $ | 50 | $ | 24,867 | |||
Asset retirement obligations | $ | — | $ | 176 | |||
Liabilities related to assets held for sale | $ | — | $ | 176 | |||
(1) Recorded at carrying value as the expected proceeds less costs to sell exceed carrying value. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
PROPERTY, PLANT, AND EQUIPMENT | ' | |||||||
PROPERTY, PLANT, AND EQUIPMENT | ||||||||
Property, plant, and equipment were as follows: | ||||||||
December 31, | ||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Land and land improvements | $ | 30,547 | $ | 28,985 | ||||
Building and leasehold improvements | 154,521 | 153,769 | ||||||
Machinery, equipment, and other | 1,301,368 | 1,278,427 | ||||||
Construction-in-progress | 37,100 | 11,017 | ||||||
Property, plant, and equipment, gross | 1,523,536 | 1,472,198 | ||||||
Accumulated depreciation | (780,590 | ) | (679,167 | ) | ||||
Property, plant, and equipment, net | $ | 742,946 | $ | 793,031 | ||||
Depreciation expense was $103.9 million, $117.2 million, and $130.5 million for the years ended December 31, 2013, 2012, and 2011, respectively. Property, plant, and equipment at December 31, 2013, includes $11.5 million of capital expenditures that were unpaid and included in accounts payable and accrued liabilities. |
INTANGIBLES_AND_OTHER_ASSETS
INTANGIBLES AND OTHER ASSETS | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
INTANGIBLES AND OTHER ASSETS | ' | |||||||||||||||
INTANGIBLES AND OTHER ASSETS | ||||||||||||||||
Intangibles and other assets consist of the following: | ||||||||||||||||
VERSO PAPER | VERSO HOLDINGS | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Amortizable intangible assets: | ||||||||||||||||
Customer relationships, net of accumulated amortization of $8.2 million on December 31, 2013, and $7.5 million on December 31, 2012 | $ | 5,120 | $ | 5,820 | $ | 5,120 | $ | 5,820 | ||||||||
Patents, net of accumulated amortization of $0.9 million on December 31, 2013, and $0.7 million on December 31, 2012 | 296 | 411 | 296 | 411 | ||||||||||||
Total amortizable intangible assets | 5,416 | 6,231 | 5,416 | 6,231 | ||||||||||||
Unamortizable intangible assets: | ||||||||||||||||
Trademarks | 16,180 | 17,780 | 16,180 | 17,780 | ||||||||||||
Other assets: | ||||||||||||||||
Financing costs, net of accumulated amortization of $13.6 million on December 31, 2013, and $8.2 million on December 31, 2012 | 28,761 | 33,909 | 28,761 | 33,909 | ||||||||||||
Deferred major repair | 16,218 | 17,473 | 16,218 | 17,473 | ||||||||||||
Replacement parts, net | 3,465 | 3,679 | 3,465 | 3,679 | ||||||||||||
Loan to affiliate | — | — | 23,305 | 23,305 | ||||||||||||
Restricted cash | 4,946 | 3,454 | 4,946 | 3,454 | ||||||||||||
Other | 6,469 | 10,601 | 6,469 | 10,601 | ||||||||||||
Total other assets | 59,859 | 69,116 | 83,164 | 92,421 | ||||||||||||
Intangibles and other assets | $ | 81,455 | $ | 93,127 | $ | 104,760 | $ | 116,432 | ||||||||
Amortization expense of intangibles was $0.8 million, $0.9 million, and $1.1 million, respectively, for the years ended December 31, 2013, 2012, and 2011. | ||||||||||||||||
The estimated future amortization expense for intangible assets over the next five years is as follows: | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
2014 | $ | 715 | ||||||||||||||
2015 | 615 | |||||||||||||||
2016 | 567 | |||||||||||||||
2017 | 400 | |||||||||||||||
2018 | 300 | |||||||||||||||
When events or circumstances so indicate, we assess the potential impairment of intangibles and other long-lived assets by comparing the expected undiscounted future cash flows to the carrying value of those assets. There was no indication to perform an interim impairment test in 2013. | ||||||||||||||||
For our indefinite-lived intangible assets, in performing our annual impairment test during the fourth quarter of 2013, we determined that the carrying value of our trademarks exceeded their fair value, and recognized an impairment charge of $1.6 million based on a projected reduction of revenues driven primarily by a decline in U.S. demand. The trademark impairment charge is included in Cost of products sold on our accompanying consolidated statement of operations for the year ended December 31, 2013. | ||||||||||||||||
During the year ended December 31, 2012, we completed a comprehensive assessment of the damage resulting from the fire and explosion at our former paper mill in Sartell, Minnesota, and announced the decision to permanently close the mill. In the third quarter of 2012, as a result of the closure, we performed an interim impairment analysis of our trademarks, which resulted in an impairment charge of $3.4 million, based on a projected reduction of revenues primarily as a result of a reduction in production capacity. Then, in performing our annual impairment test, we determined that the carrying value of our trademarks exceeded their fair value, and recognized an additional $0.3 million of impairment charge. The trademarks impairment charge is included in Restructuring charges on our accompanying consolidated statement of operations (see also Note 17). | ||||||||||||||||
In connection with our annual goodwill impairment review in the fourth quarter of 2011, we determined that there was an indication of impairment. As a result we completed the second step of the goodwill impairment test by comparing the fair value of the reporting unit to the fair value of its identifiable assets and liabilities to determine the implied fair value of goodwill. Based on our analysis, we determined that the carrying value of the ‘Coated’ reporting unit exceeded its fair value, and Verso Paper recognized a goodwill impairment loss of $18.7 million and Verso Holdings recognized a goodwill impairment charge of $10.5 million. |
ACCRUED_LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Payables and Accruals [Abstract] | ' | |||||||||||||||
ACCRUED LIABILITIES | ' | |||||||||||||||
ACCRUED LIABILITIES | ||||||||||||||||
A summary of accrued liabilities is as follows: | ||||||||||||||||
VERSO PAPER | VERSO HOLDINGS | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Accrued interest | $ | 58,852 | $ | 56,013 | $ | 58,977 | $ | 55,060 | ||||||||
Payroll and employee benefit costs | 40,054 | 37,721 | 40,054 | 37,721 | ||||||||||||
Accrued sales rebates | 11,573 | 11,138 | 11,573 | 11,138 | ||||||||||||
Derivatives | 4,959 | 3,909 | 4,959 | 3,909 | ||||||||||||
Accrued taxes - other than income | 1,456 | 1,584 | 1,431 | 1,478 | ||||||||||||
Restructuring costs | — | 5,098 | — | 5,098 | ||||||||||||
Freight and other | 5,441 | 4,717 | 5,441 | 4,717 | ||||||||||||
Accrued liabilities | $ | 122,335 | $ | 120,180 | $ | 122,435 | $ | 119,121 | ||||||||
DEBT
DEBT | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||
DEBT | ' | |||||||||||||||||||||||
DEBT | ||||||||||||||||||||||||
A summary of long-term debt is as follows: | ||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||
(Dollars in thousands) | Original | Interest | Balance | Fair | Balance | Fair | ||||||||||||||||||
Maturity | Rate | Value | Value | |||||||||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||
Revolving Credit Facilities | 5/4/17 | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
11.75% Senior Secured Notes (1) | 1/15/19 | 11.75 | % | 426,076 | 448,341 | 341,493 | 361,388 | |||||||||||||||||
11.75% Secured Notes | 1/15/19 | 11.75 | % | 271,573 | 206,629 | 271,573 | 198,248 | |||||||||||||||||
8.75% Second Priority Senior Secured Notes (2) | 2/1/19 | 8.75 | % | 395,018 | 130,363 | 394,871 | 159,960 | |||||||||||||||||
Second Priority Senior Secured Floating Rate Notes | 8/1/14 | 3.99 | % | 13,310 | 7,986 | 13,310 | 9,650 | |||||||||||||||||
11.38% Senior Subordinated Notes | 8/1/16 | 11.38 | % | 142,500 | 64,125 | 142,500 | 58,995 | |||||||||||||||||
Chase NMTC Verso Investment Fund LLC | ||||||||||||||||||||||||
Loan from Verso Paper Finance Holdings LLC | 12/29/40 | 6.5 | % | 23,305 | 23,305 | 23,305 | 23,305 | |||||||||||||||||
Total debt for Verso Paper Holdings LLC | 1,271,782 | 880,749 | 1,187,052 | 811,546 | ||||||||||||||||||||
Verso Paper Finance Holdings LLC | ||||||||||||||||||||||||
Senior Unsecured Term Loan | 2/1/13 | — | % | — | — | 93,212 | 91,348 | |||||||||||||||||
Loan from Verso Paper Holdings LLC | 12/29/40 | 6.5 | % | 23,305 | 23,305 | 23,305 | 23,305 | |||||||||||||||||
Less current maturities of long-term debt | (13,310 | ) | (7,986 | ) | (8,501 | ) | (8,331 | ) | ||||||||||||||||
Less loans from affiliates | (46,610 | ) | (46,610 | ) | (46,610 | ) | (46,610 | ) | ||||||||||||||||
Total long-term debt for Verso Paper Corp. | $ | 1,235,167 | $ | 849,458 | $ | 1,248,458 | $ | 871,258 | ||||||||||||||||
(1) Par value of $417,882 on December 31, 2013 and $345,000 on December 31, 2012. | ||||||||||||||||||||||||
(2) Par value of $396,000 on December 31, 2013 and 2012. | ||||||||||||||||||||||||
We determine the fair value of our debt based on market information and a review of prices and terms available for similar obligations. Our debt is classified as Level 2 within the fair value hierarchy (see also Note 15). | ||||||||||||||||||||||||
Amounts included in interest expense related to debt and amounts of cash interest payments on debt are as follows: | ||||||||||||||||||||||||
VERSO PAPER | VERSO HOLDINGS | |||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Interest expense | $ | 133,599 | $ | 133,644 | $ | 124,895 | $ | 134,527 | $ | 126,486 | $ | 120,861 | ||||||||||||
Cash interest paid | 129,467 | 113,334 | 115,651 | 130,830 | 114,849 | 117,043 | ||||||||||||||||||
Debt issuance cost amortization(1) | 5,398 | 5,317 | 5,396 | 5,368 | 4,957 | 5,036 | ||||||||||||||||||
(1) Amortization of debt issuance cost is included in interest expense. | ||||||||||||||||||||||||
Revolving Credit Facilities. In 2012, Verso Holdings entered into revolving credit facilities consisting of a $150.0 million asset-based loan facility, or “ABL Facility,” and a $50.0 million cash-flow facility, or “Cash Flow Facility.” In connection with the revolving credit facilities, debt issuance costs of approximately $9.3 million were deferred and will be amortized over the life of the credit facilities. The indebtedness under the revolving credit facilities bears interest at a floating rate based on a margin over a base rate or eurocurrency rate. Verso Holdings is required to pay commitment fees to the lenders in respect of unutilized commitments under the revolving credit facilities and other customary fees. The indebtedness under the ABL Facility and related guarantees are secured by first-priority security interests, subject to permitted liens, in substantially all of Verso Holdings’, Verso Finance’s, and the subsidiary guarantors’ inventory and accounts receivable, or “ABL Priority Collateral,” and second-priority security interests, subject to permitted liens, in substantially all of their other assets, or “Notes Priority Collateral.” The indebtedness under the Cash Flow Facility and related guarantees are secured, pari passu with the 11.75% Senior Secured Notes due 2019 and related guarantees, by first-priority security interests in the Notes Priority Collateral and second-priority security interests in the ABL Priority Collateral. The revolving credit facilities will mature on May 4, 2017, unless, on any of the dates that is 91 days prior to the earliest scheduled maturity of any of the Second Priority Senior Secured Floating Rate Notes due 2014, or the 11.38% Senior Subordinated Notes, an aggregate principal amount in excess of $100.0 million of indebtedness under such existing second-lien notes, or subordinated notes, as applicable, is outstanding, in which case the revolving credit facilities will mature on such earlier date. On January 3, 2014, Verso Holdings entered into certain amendments to the revolving credit facilities in connection with the Merger, in which (a) the lenders under each of our revolving credit facilities consented to the Merger and the other transactions contemplated by the Merger Agreement, including the incurrence of certain additional indebtedness, (b) the lenders consented to amendments to allow the sale and/or financing of certain non-core assets and (c) the parties agreed to amend our revolving credit facilities to allow for certain other transactions upon the consummation of the Merger and the other transactions contemplated by the Merger Agreement. The ABL Facility had no outstanding balance, $42.3 million in letters of credit issued, and $90.7 million available for future borrowing as of December 31, 2013. The Cash Flow Facility had no outstanding balance, no letters of credit issued, and $50.0 million available for future borrowing as of December 31, 2013. | ||||||||||||||||||||||||
11.75% Senior Secured Notes due 2019. In 2012, Verso Holdings issued $345.0 million aggregate principal amount of 11.75% Senior Secured Notes due 2019. The notes bear interest, payable semi-annually, at the rate of 11.75% per year. The notes are guaranteed jointly and severally by each of Verso Holdings’ subsidiaries, subject to certain exceptions, and the notes and guarantees are senior secured obligations of Verso Holdings and the guarantors, respectively. The indebtedness under the notes and related guarantees are secured, pari passu with the Cash Flow Facility and related guarantees, by first-priority security interests in the Notes Priority Collateral and second-priority security interests in the ABL Priority Collateral. The notes will mature on January 15, 2019; provided, however, that, if as of 45 days prior to the maturity dates of our 11.375% Senior Subordinated Notes due 2016, more than $100.0 million of such Senior Subordinated Notes remains outstanding, the notes will mature on that day. | ||||||||||||||||||||||||
In 2012, Verso Holdings used the proceeds from the issuance of the 11.75% Senior Secured Notes due 2019 to repurchase and retire the balance of its 11.5% Senior Secured Notes due 2014. Verso Holdings recognized a loss of $34.5 million, which is included in Other loss, net, on our accompanying consolidated statements of operations on the early retirement of notes, including the write-off of unamortized debt issuance costs and unamortized discounts related to the notes. Debt issuance costs of approximately $10.1 million were deferred and will be amortized over the life of the notes. | ||||||||||||||||||||||||
On January 31, 2013, Verso Holdings issued $72.9 million aggregate principal amount of its 11.75% Senior Secured Notes due 2019 to certain lenders holding approximately $85.8 million aggregate principal amount of Verso Finance’s Senior Unsecured Term Loans, and net accrued interest through the closing date, at an exchange rate of 85%, in exchange for the assignment to Verso Finance of its Senior Unsecured Term Loans and the cancellation of such loans. There are no longer any outstanding Senior Unsecured Term Loans. In accordance with ASC Topic 470-60, the notes were recorded at the Unsecured Term Loans value exchanged and the amount in excess of par will be amortized over the life of the notes. Debt issuance costs of $2.8 million were expensed as incurred and are recorded in Other loss, net on the accompanying consolidated statements of operations. The exchange and funding of the principal and interest payments on the Senior Unsecured Term Loans are recorded as a Return of capital on Verso Holdings' statement of member's equity and the exchange of $85.8 million represents a non-cash financing activity on Verso Holding's statement of cash flows. The 11.75% Senior Secured Notes due 2019 issued in 2012 and 2013 constitute one class of securities. | ||||||||||||||||||||||||
11.75% Secured Notes due 2019. In 2012, Verso Holdings issued $271.6 million aggregate principal amount of 11.75% Secured Notes due 2019. The notes bear interest, payable semi-annually, at the rate of 11.75% per year. The notes are guaranteed jointly and severally by each of Verso Holdings' subsidiaries, subject to certain exceptions, and the notes and guarantees are senior secured obligations of Verso Holdings and the guarantors, respectively. The notes and related guarantees are secured by security interests, subject to permitted liens, in substantially all of Verso Holdings' and the guarantors' tangible and intangible assets. The security interests securing the notes rank junior to those securing the obligations under the ABL Facility, the Cash Flow Facility, and the 11.75% Senior Secured Notes due 2019 and rank senior to those securing the 8.75% Second Priority Senior Secured Notes due 2019. The notes will mature on January 15, 2019. | ||||||||||||||||||||||||
Verso Holdings issued the notes pursuant to two separate exchange offers whereby it issued a total of $271.6 million aggregate principal amount of the notes and paid a total of $22.3 million in cash in exchange for $166.9 million aggregate principal amount of its Second Priority Senior Secured Floating Rate Notes due 2014 and for $157.5 million aggregate principal amount of the 11.38% Senior Subordinated Notes due 2016. Verso Holdings recognized a total gain of $26.3 million, net of the write-off of unamortized debt issuance costs, from the exchanges, which is included in Other loss, net on our accompanying consolidated statements of operations. Debt issuance costs of approximately $5.4 million were deferred and will be amortized over the life of the notes. | ||||||||||||||||||||||||
8.75% Second Priority Senior Secured Notes due 2019. In 2011, Verso Holdings issued $396.0 million aggregate principal amount of 8.75% Second Priority Senior Secured Notes due 2019. The notes bear interest, payable semi-annually, at the rate of 8.75% per year. The notes are guaranteed jointly and severally by each of Verso Holdings’ subsidiaries, subject to certain exceptions, and the notes and guarantees are senior secured obligations of Verso Holdings and the guarantors, respectively. The notes and related guarantees are secured by second priority liens, subject to permitted liens, on substantially all of Verso Holdings’ and the guarantors’ tangible and intangible assets, excluding securities of Verso Holdings’ affiliates. The notes mature on February 1, 2019. | ||||||||||||||||||||||||
Second Priority Senior Secured Floating Rate Notes due 2014. In 2006, Verso Holdings issued $250.0 million aggregate principal amount of Second Priority Senior Secured Floating Rate Notes due 2014. As of December 31, 2013, Verso Holdings had repurchased and retired a total of $236.7 million aggregate principal amount of the notes. As of May 8, 2012, the Second Priority Senior Secured Floating Rate Notes due 2014 are no longer secured by any collateral. The notes bear interest, payable quarterly, at a rate equal to LIBOR plus 3.75% per year. As of December 31, 2013, the interest rate on the notes was 3.99% per year. The notes mature on August 1, 2014. The balance of the Second Priority Senior Secured Floating Rate Notes is included in Current maturities of long-term debt on the accompanying consolidated balance sheets. | ||||||||||||||||||||||||
11.38% Senior Subordinated Notes due 2016. In 2006, Verso Holdings issued $300 million aggregate principal amount of 11.38% Senior Subordinated Notes due 2016. As of December 31, 2013, Verso Holdings had repurchased and retired a total of $157.5 million aggregate principal amount of the notes. The notes bear interest, payable semi-annually, at the rate of 11.38% per year. The notes mature on August 1, 2016. | ||||||||||||||||||||||||
In January 2014, Verso Holdings commenced offers to exchange new Second Priority Adjustable Senior Secured Notes and new Adjustable Senior Subordinated Notes for any and all of its outstanding 8.75% Second Priority Senior Secured Notes due 2019 and 11.38% Senior Subordinated Notes due 2016, respectively. On February 27, 2014, the minimum tender conditions for the exchange offers had not been satisfied, and the exchange offers and consent solicitations expired by their terms without Verso Holdings accepting any of its outstanding 8.75% Second Priority Senior Secured Notes due 2019 and 11.38% Senior Subordinated Notes due 2016 for exchange. | ||||||||||||||||||||||||
Loan from Verso Paper Finance Holdings LLC/ Verso Paper Holdings LLC. In 2010, Verso Quinnesec REP LLC, an indirect, wholly-owned subsidiary of Verso Holdings, entered into a financing transaction with Chase NMTC Verso Investment Fund, LLC, or the “Investment Fund,” a consolidated variable interest entity. Under this arrangement, Verso Holdings loaned $23.3 million to Verso Finance at an interest rate of 6.5% per year and with a maturity of December 29, 2040, and Verso Finance, in turn, loaned the funds on similar terms to the Investment Fund. The Investment Fund then contributed the loan proceeds to certain community development entities, which, in turn, loaned the funds on similar terms to Verso Quinnesec REP LLC as partial financing for the renewable energy project at our mill in Quinnesec, Michigan. | ||||||||||||||||||||||||
The payments required under the debt listed above during the years following December 31, 2013, are set forth below: | ||||||||||||||||||||||||
(Dollars in thousands) | VERSO | VERSO | ||||||||||||||||||||||
PAPER | HOLDINGS | |||||||||||||||||||||||
2014 | 13,310 | 13,310 | ||||||||||||||||||||||
2015 | — | — | ||||||||||||||||||||||
2016 | 142,500 | 142,500 | ||||||||||||||||||||||
2017 | — | — | ||||||||||||||||||||||
2018 | — | — | ||||||||||||||||||||||
2019 and thereafter | 1,085,455 | 1,108,760 | ||||||||||||||||||||||
Total debt | $ | 1,241,265 | $ | 1,264,570 | ||||||||||||||||||||
At December 31, 2013, we were in compliance with the covenants in our debt agreements. |
OTHER_LIABILITIES
OTHER LIABILITIES | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Payables and Accruals [Abstract] | ' | |||||||||||||||
OTHER LIABILITIES | ' | |||||||||||||||
OTHER LIABILITIES | ||||||||||||||||
Other liabilities consist of the following: | ||||||||||||||||
VERSO PAPER | VERSO HOLDINGS | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Pension benefit obligation | $ | 25,231 | $ | 30,416 | $ | 25,231 | $ | 30,416 | ||||||||
Asset retirement obligations | 12,708 | 11,854 | 12,708 | 11,854 | ||||||||||||
Non-controlling interests | 7,923 | 7,923 | 7,923 | 7,923 | ||||||||||||
Deferred income taxes | 6,174 | 6,774 | — | — | ||||||||||||
Deferred compensation | 3,495 | 3,396 | 3,495 | 3,396 | ||||||||||||
Derivatives | — | 225 | — | 225 | ||||||||||||
Other | 1,068 | 635 | 1,068 | 634 | ||||||||||||
Other liabilities | $ | 56,599 | $ | 61,223 | $ | 50,425 | $ | 54,448 | ||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
EARNINGS PER SHARE | ' | |||||||||||
EARNINGS PER SHARE | ||||||||||||
The following table provides a reconciliation of basic and diluted loss per common share of Verso Paper: | ||||||||||||
VERSO PAPER | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands, except per share amounts) | 2013 | 2012 | 2011 | |||||||||
Net income (loss) available to common shareholders | $ | (111,206 | ) | $ | (173,829 | ) | $ | (137,061 | ) | |||
Weighted average common stock outstanding | 52,583 | 52,365 | 52,207 | |||||||||
Weighted average restricted stock | 541 | 485 | 388 | |||||||||
Weighted average common shares outstanding - basic | 53,124 | 52,850 | 52,595 | |||||||||
Dilutive shares from stock options | — | — | — | |||||||||
Weighted average common shares outstanding - diluted | 53,124 | 52,850 | 52,595 | |||||||||
Basic loss per share | $ | (2.09 | ) | $ | (3.29 | ) | $ | (2.61 | ) | |||
Diluted loss per share | $ | (2.09 | ) | $ | (3.29 | ) | $ | (2.61 | ) | |||
In accordance with ASC Topic 260, Earnings Per Share, unvested restricted stock awards issued by Verso Paper contain nonforfeitable rights to dividends and qualify as participating securities. No dividends have been declared or paid in 2013, 2012, or 2011. | ||||||||||||
For 2013, 4,344,628 weighted average potentially dilutive shares from stock options with a weighted average exercise price per share of $2.40 were excluded from the diluted earnings per share calculation due to the antidilutive effect such shares would have on net loss per common share. For 2012, 3,033,282 weighted average potentially dilutive shares from stock options with a weighted average exercise price per share of $2.85 were excluded from the diluted earnings per share calculation due to the antidilutive effect such shares would have on net loss per common share. For 2011, 1,728,127 weighted average potentially dilutive shares from stock options with a weighted average exercise price per share of $3.83 were excluded from the diluted earnings per share calculation due to the antidilutive effect such shares would have on net loss per common share. |
RETIREMENT_PLANS
RETIREMENT PLANS | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
RETIREMENT PLANS | ' | |||||||||||||||
RETIREMENT PLANS | ||||||||||||||||
Defined Benefit Plan | ||||||||||||||||
We maintain defined benefit pension plans that provide retirement benefits for certain current hourly employees at the Androscoggin and Bucksport mills, and former hourly employees at the Sartell mill who were hired prior to July 1, 2004. Employees hired after June 30, 2004, who are not eligible to participate in the pension plans receive an additional company contribution to their accounts under our 401(k) savings plan (see “Other Benefits” discussion below). The pension plans provide defined benefits based on years of credited service times a specified flat dollar benefit rate. | ||||||||||||||||
During 2012, a curtailment loss of $1.5 million was recognized in Restructuring charges on the consolidated statements of operations due to a reduction in headcount associated with the closure of the former Sartell mill. The curtailment loss included $0.6 million of amortization of prior service cost and a net actuarial loss of $0.9 million. | ||||||||||||||||
During 2011, a curtailment loss of $1.9 million was recognized in Restructuring charges on the consolidated statements of operations due to a reduction in headcount associated with the paper machine shutdowns. The curtailment loss included $0.4 million of amortization of prior service cost and a net actuarial loss of $1.5 million. | ||||||||||||||||
The following table summarizes the components of net periodic pension cost for the years ended December 31, 2013, 2012, and 2011: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||||||
Components of net periodic pension cost: | ||||||||||||||||
Service cost | $ | 6,613 | $ | 7,082 | $ | 6,694 | ||||||||||
Interest cost | 3,115 | 2,876 | 2,521 | |||||||||||||
Expected return on plan assets | (3,303 | ) | (2,791 | ) | (2,234 | ) | ||||||||||
Amortization of actuarial loss | 1,631 | 1,648 | 393 | |||||||||||||
Amortization of prior service cost | 651 | 740 | 1,176 | |||||||||||||
Curtailment | — | 1,517 | 1,921 | |||||||||||||
Net periodic pension cost | $ | 8,707 | $ | 11,072 | $ | 10,471 | ||||||||||
The following table provides detail on prior service cost and net actuarial loss recognized in Accumulated other comprehensive loss at December 31, 2013 and 2012: | ||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||||||
Amounts recognized in Accumulated other comprehensive loss: | ||||||||||||||||
Prior service cost | $ | 1,923 | $ | 2,574 | ||||||||||||
Net actuarial loss | 9,512 | 22,364 | ||||||||||||||
The estimated net actuarial loss and prior service cost that will be amortized from Accumulated other comprehensive loss into net periodic pension cost during 2014 is $0.2 million and $0.7 million, respectively. We expect no plan assets to be returned to the company in 2014. | ||||||||||||||||
We make contributions that are sufficient to fully fund our actuarially determined costs, generally equal to the minimum amounts required by the Employee Retirement Income Security Act, or “ERISA.” In 2012, legislation titled Moving Ahead for Progress in the 21st Century, or “MAP-21,” was enacted and had the effect of spreading the expected funding requirements over a longer period of time. After the enactment of MAP-21, our required contribution to the pension plan during 2013, was reduced to $0.4 million for the 2012 plan year and $0 for the 2013 plan year. As such, we made contributions of $0.4 million in 2013, $10.7 million in 2012, and $9.6 million in 2011, respectively, to the pension plans. In 2014, we expect to make cash contributions of approximately $10.7 million to the pension plans, including additional contributions required as a result of the closure of the Sartell mill. | ||||||||||||||||
The following table sets forth a reconciliation of the plans’ benefit obligation, plan assets and funded status at December 31, 2013 and 2012: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||||||
Change in Projected Benefit Obligation: | ||||||||||||||||
Benefit obligation at beginning of period | $ | 81,944 | $ | 67,686 | ||||||||||||
Service cost | 6,613 | 7,082 | ||||||||||||||
Interest cost | 3,115 | 2,876 | ||||||||||||||
Actuarial (gain) loss | (10,472 | ) | 4,915 | |||||||||||||
Benefits paid | (2,499 | ) | (1,560 | ) | ||||||||||||
Curtailment | — | 945 | ||||||||||||||
Benefit obligation on December 31 | $ | 78,701 | $ | 81,944 | ||||||||||||
Change in Plan Assets: | ||||||||||||||||
Plan assets at fair value, beginning of fiscal year | $ | 51,528 | $ | 38,883 | ||||||||||||
Actual net return on plan assets | 4,052 | 3,520 | ||||||||||||||
Employer contributions | 389 | 10,685 | ||||||||||||||
Benefits paid | (2,499 | ) | (1,560 | ) | ||||||||||||
Plan assets at fair value, end of fiscal year | $ | 53,470 | $ | 51,528 | ||||||||||||
Unfunded projected benefit obligation recognized in other liabilities on the consolidated balance sheets | $ | (25,231 | ) | $ | (30,416 | ) | ||||||||||
The accumulated benefit obligation at December 31, 2013 and 2012, is $78.7 million and $81.9 million, respectively. | ||||||||||||||||
The following table summarizes expected future pension benefit payments: | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
2014 | $ | 2,331 | ||||||||||||||
2015 | 2,561 | |||||||||||||||
2016 | 2,829 | |||||||||||||||
2017 | 3,165 | |||||||||||||||
2018 | 3,592 | |||||||||||||||
2019-2023 | 25,849 | |||||||||||||||
We evaluate our actuarial assumptions annually as of December 31 (the measurement date) and consider changes in these long-term factors based upon market conditions and the requirements of ASC Topic 715. These assumptions are used to calculate benefit obligations as of December 31 of the current year, and pension expense to be recorded for the following year. The discount rate assumption reflects the yield on a portfolio of high quality fixed-income instruments that have a similar duration to the plans’ liabilities. The expected long-term rate of return assumption reflects the average return expected on the assets invested to provide for the plans’ liabilities. | ||||||||||||||||
The actuarial assumptions used in the defined benefit pension plans were as follows: | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Weighted average assumptions used to determine benefit obligations as of December 31: | ||||||||||||||||
Discount rate | 4.75 | % | 3.8 | % | 4.3 | % | ||||||||||
Rate of compensation increase | N/A | N/A | N/A | |||||||||||||
Weighted average assumptions used to determine net periodic pension cost for the fiscal year: | ||||||||||||||||
Discount rate | 3.84 | 4.3 | 5.4 | |||||||||||||
Rate of compensation increase | N/A | N/A | N/A | |||||||||||||
Expected long-term return on plan assets | 6.5 | 6.5 | 6.5 | |||||||||||||
The following table provides the pension plans’ asset allocation on December 31, 2013 and 2012: | ||||||||||||||||
Allocation of Plan Assets | ||||||||||||||||
2013 | Allocation on | 2012 | Allocation on | |||||||||||||
Targeted Allocation | 31-Dec-13 | Targeted Allocation | 31-Dec-12 | |||||||||||||
Other securities: | 60% | 70% - 80% | ||||||||||||||
Money market funds | — | % | 1 | % | ||||||||||||
Fixed income funds | 48 | % | 66 | % | ||||||||||||
Other funds | 10 | % | 1 | % | ||||||||||||
Equity securities: | 40% | 20% - 30% | ||||||||||||||
Domestic equity funds - large cap | 24 | % | 22 | % | ||||||||||||
Domestic equity funds - small cap | 12 | % | 5 | % | ||||||||||||
International equity funds | 6 | % | 5 | % | ||||||||||||
ASC Topic 820 provides a common definition of fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions used to value the assets or liabilities (see Note 15 – Fair Value of Financial Instruments for more detail). The following table sets forth by level, within the fair value hierarchy, the pension plans’ assets at fair value as of December 31, 2013 and 2012. | ||||||||||||||||
(Dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
December 31, 2013 | ||||||||||||||||
Fixed income funds | $ | 25,764 | $ | 25,764 | $ | — | $ | — | ||||||||
Domestic equity funds - large cap | 13,086 | 13,086 | — | — | ||||||||||||
Domestic equity funds - small cap | 6,214 | 6,214 | — | — | ||||||||||||
International equity funds | 3,167 | 3,167 | — | — | ||||||||||||
Money market funds | — | — | — | — | ||||||||||||
Other funds | 5,239 | 5,239 | — | — | ||||||||||||
Total assets at fair value | $ | 53,470 | $ | 53,470 | $ | — | $ | — | ||||||||
December 31, 2012 | ||||||||||||||||
Fixed income funds | $ | 34,021 | $ | 34,021 | $ | — | $ | — | ||||||||
Domestic equity funds - large cap | 11,346 | — | 11,346 | — | ||||||||||||
Domestic equity funds - small cap | 2,693 | 2,693 | — | — | ||||||||||||
International equity funds | 2,331 | 1,164 | 1,167 | — | ||||||||||||
Money market funds | 632 | 632 | — | — | ||||||||||||
Other funds | 505 | 505 | — | — | ||||||||||||
Total assets at fair value | $ | 51,528 | $ | 39,015 | $ | 12,513 | $ | — | ||||||||
Fair value is determined based on the net asset value of units held by the plan at period end. | ||||||||||||||||
Our primary investment objective is to ensure, over the long-term life of the pension plans, an adequate pool of sufficiently liquid assets to support the benefit obligations. In meeting this objective, the pension plans seek to achieve a high level of investment return through long-term stock and bond investment strategies, consistent with a prudent level of portfolio risk. Any volatility in investment performance compared to investment objectives should be explainable in terms of general economic and market conditions. Our targeted pension fund asset allocation was updated during the third quarter of 2013. The expected return on plan assets assumption for 2014 will be 6.50 percent. The expected long-term rate of return on plan assets reflects the weighted-average expected long-term rates of return for the broad categories of investments currently held in the plans (adjusted for expected changes), based on historical rates of return for each broad category, as well as factors that may constrain or enhance returns in the broad categories in the future. The expected long-term rate of return on plan assets is adjusted when there are fundamental changes in expected returns in one or more broad asset categories and when the weighted-average mix of assets in the plans changes significantly. | ||||||||||||||||
Defined Contribution Plan | ||||||||||||||||
We sponsor a defined contribution plan to provide salaried, Quinnesec hourly, and certain Bucksport hourly employees an opportunity to accumulate personal funds and to provide additional benefits for retirement. | ||||||||||||||||
As determined by the provisions of the plan, we contribute annually a percentage of employee earnings. The percentage is based on age and years of credited service for employees who were hired prior to July 1, 2004 and a fixed percentage of earnings to employees who were hired after June 30, 2004. Expense under this plan was $4.8 million, $5.6 million, and $7.6 million for the years ended December 31, 2013, 2012, and 2011 respectively. | ||||||||||||||||
Other Benefits | ||||||||||||||||
We sponsor a 401(k) plan to provide salaried and hourly employees an opportunity to accumulate personal funds and to provide additional benefits for retirement. Employee contributions may be made on a before-tax or after-tax basis to the plan. Employer matching contributions under the plan were $6.7 million, $7.2 million, and $8.6 million for the years ended December 31, 2013, 2012, and 2011, respectively |
EQUITY_AWARDS
EQUITY AWARDS | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||
EQUITY AWARDS | ' | ||||||||||||||
EQUITY AWARDS | |||||||||||||||
The Verso Paper Corp. 2008 Incentive Award Plan, as amended, or the “Incentive Plan,” authorizes the issuance of stock awards covering up to 6,250,000 shares of our common stock. Under the Incentive Plan, stock awards may be granted to employees, consultants, and directors upon approval by the board of directors. | |||||||||||||||
We have issued non-qualified stock options to certain non-employee directors that vest upon grant and expire 10 years from the date of grant. We also have issued time-based non-qualified stock options to officers and management employees in 2013, 2012, and 2011. The time-based options vest one to three years from the date of grant and expire seven years from the date of grant. In 2009, we issued performance-based non-qualified stock options to an officer and management. The performance-based options vested one to three years from the date of grant based on the achievement of certain performance criteria tied to Verso Paper’s calculation of Adjusted EBITDA and expire seven years from the date of grant. In March 2011, we revised the performance criteria for certain unvested performance-based stock options. The incremental increase of $0.1 million in the fair value of the modified options was recognized over the remaining service period. | |||||||||||||||
A summary of stock option plan activity (including the performance-based options) for the years ended December 31, 2013, 2012, and 2011 is provided below: | |||||||||||||||
Options | Weighted | Weighted | Weighted | Aggregate | |||||||||||
Outstanding | Average | Average | Average | Intrinsic | |||||||||||
Exercise | Grant Date | Remaining | Value | ||||||||||||
Price | Fair Value | Contractual | (in thousands) | ||||||||||||
Life (in years) | |||||||||||||||
December 31, 2010(1) | 1,388,746 | 3.36 | 2.05 | ||||||||||||
Options granted | 430,855 | 5.63 | 4.13 | ||||||||||||
Forfeited | (32,295 | ) | 3.97 | 2.68 | |||||||||||
Exercised | (5,807 | ) | 2.88 | 2 | |||||||||||
31-Dec-11 | 1,781,499 | 3.9 | 2.59 | ||||||||||||
Options granted | 2,193,701 | 1.46 | 1.07 | ||||||||||||
Forfeited | (90,007 | ) | 3.48 | 2.52 | |||||||||||
31-Dec-12 | 3,885,193 | 2.53 | 1.73 | ||||||||||||
Options granted | 564,442 | 1.29 | 0.93 | ||||||||||||
Forfeited | (15,929 | ) | 1.53 | 1.09 | |||||||||||
December 31, 2013(2) | 4,433,706 | 2.38 | 1.63 | 4.6 | |||||||||||
Options exercisable on December 31, 2013(2) | 2,304,798 | 3.03 | 3.8 | $ | — | ||||||||||
Options expected to vest as of December 31, 2013 | 2,128,908 | 1.68 | — | ||||||||||||
-1 | On December 31, 2010, there were an additional 19,094 of performance-based options for which the performance period had not begun. These options were classified as liability awards and had a weighted average fair values of $2.40 at December 31, 2010. | ||||||||||||||
-2 | On December 31, 2013, options outstanding had exercise prices ranging from $0.71 to $5.93 and options exercisable had exercise prices ranging from $0.71 to $5.93. | ||||||||||||||
We used the Black-Scholes option pricing model to estimate the fair value of stock options granted in 2013, 2012, and 2011, with the following assumptions: | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Expected weighted-average life of options granted | 4.5 years | 3.0 - 5.0 years | 3.0 - 5.0 years | ||||||||||||
Range of volatility rates based on historical industry volatility | 100.52% | 94.39% - 102.22% | 90.65% | ||||||||||||
Range of risk-free interest rates | 0.81% | .57% - .83% | 1.18% - 2.16% | ||||||||||||
Expected dividend yield | — | — | — | ||||||||||||
Based on our limited exercise history, we use the simplified method of calculating expected lives of options granted per ASC Topic 718-10-S99. Expected volatility is estimated using historical industry volatility blended with Verso Paper’s historical volatility. The dividend yield is assumed to be zero since we have no current plans to declare dividends. The risk-free interest rates are based on the market yield of U.S. Treasury securities. | |||||||||||||||
On December 31, 2013, there was $1.5 million of unrecognized compensation cost related to stock options which is expected to be recognized over a weighted-average period of approximately 1.6 years. There were no option exercises in 2013 or 2012, and the total intrinsic value of options exercised in 2011 was immaterial to Verso Paper’s consolidated financial statements. Cash received and tax benefits realized from options exercised during 2011 were also immaterial to Verso Paper’s consolidated financial statements. | |||||||||||||||
In 2013, Verso Paper issued 295,336 restricted stock awards to its executives, directors, and certain senior managers with a weighted-average grant date fair value of $1.29 per share, based on the closing market price of our common stock on the date of grant. Verso Paper also issued 320,414 and 158,057 restricted stock awards to its executives and senior management in 2012 and 2011, respectively. The 2012 and 2011, restricted stock awards had weighted average grant date fair values of $1.20 and $5.70, respectively, which was equal to the closing market price of our common stock on the date of grant. The restrictions lapse in equal annual installments on each of the first three anniversaries of the date of grant. As of December 31, 2013, there was $0.4 million of unrecognized compensation cost related to restricted stock awards which is expected to be recognized over a weighted-average period of approximately 1.8 years. The restrictions on these shares automatically lapse in the event of a change of control as defined in the Incentive Plan. | |||||||||||||||
Simultaneously with the consummation of the IPO, the limited partnership agreement of Verso Paper’s parent, Verso Paper Management LP, or the “Partnership,” was amended to, among other things; change its equity structure from multiple classes of units representing limited partner interests in the Partnership to a single class of units representing such interests. The conversion from the prior multiple-class unit structure, or the “Legacy Units,” to a new single class of units in the Partnership was designed to correlate the equity structure of the Partnership with the post-IPO equity structure of Verso Paper. | |||||||||||||||
Certain members of our management were granted Legacy Class B Units, which vested over a five-year period at the rate of 20% per year on each anniversary of the grant date. As of December 31, 2013, all Legacy Class B Units were vested. | |||||||||||||||
Equity award expense for the years ended December 31, 2013, 2012 and 2011, respectively, was $1.8 million, $2.7 million, and $2.4 million. |
BUCKSPORT_ENERGY_ASSET_INVESTM
BUCKSPORT ENERGY ASSET INVESTMENT | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Text Block [Abstract] | ' | |||||||
BUCKSPORT ENERGY ASSET INVESTMENT | ' | |||||||
BUCKSPORT ENERGY ASSET INVESTMENT | ||||||||
We have a joint ownership interest with Bucksport Energy LLC, an unrelated third party, in a cogeneration power plant producing steam and electricity. The plant was built in 2000 and is located at and supports our mill in Bucksport, Maine. Each co-owner owns an undivided proportional share of the plant’s assets, and we account for this investment under the proportional consolidation method. We own 28% of the steam and electricity produced by the plant. We may purchase our remaining electrical needs from the plant at market rates. We are obligated to purchase the remaining 72% of the steam output from the plant at fuel cost plus a contractually fixed fee per unit of steam. Power generation and operating expenses are divided on the same basis as ownership, and are reflected in Cost of products sold in our accompanying consolidated statements of operations. | ||||||||
Balances included in the balance sheet at December 31, 2013 and 2012, related to this investment are as follows: | ||||||||
December 31, | ||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Other receivables | $ | 281 | $ | 413 | ||||
Other assets(1) | 214 | 220 | ||||||
Property, plant, and equipment | $ | 10,692 | $ | 10,697 | ||||
Accumulated depreciation | (4,668 | ) | (3,971 | ) | ||||
Net property, plant, and equipment | $ | 6,024 | $ | 6,726 | ||||
Current liabilities | $ | (83 | ) | $ | (159 | ) | ||
(1) Represents primarily restricted cash which may be used only to fund the ongoing energy operations of this investment. | ||||||||
In addition to the ownership interest, we are required to maintain an account for our portion of expected major maintenance activities of the plant. As of December 31, 2013 and 2012, there was $2.3 million and $0.7 million of restricted cash included in Intangibles and other assets in the accompanying consolidated balance sheets related to the maintenance account. |
DERIVATIVE_INSTRUMENTS_AND_HED
DERIVATIVE INSTRUMENTS AND HEDGES | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGES | ' | |||||||||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGES | ||||||||||||||||||||||||
In the normal course of business, we utilize derivatives contracts as part of our risk management strategy to manage our exposure to market fluctuations in energy prices. These instruments are subject to credit and market risks in excess of the amount recorded on the balance sheet in accordance with GAAP. Controls and monitoring procedures for these instruments have been established and are routinely reevaluated. Credit risk represents the potential loss that may occur because a party to a transaction fails to perform according to the terms of the contract. The measure of credit exposure is the replacement cost of contracts with a positive fair value. We manage credit risk by entering into financial instrument transactions only through approved counterparties. Market risk represents the potential loss due to the decrease in the value of a financial instrument caused primarily by changes in commodity prices. We manage market risk by establishing and monitoring limits on the types and degree of risk that may be undertaken. | ||||||||||||||||||||||||
Derivative instruments are recorded on the balance sheet as other assets or other liabilities measured at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied. For a cash flow hedge accounted for under ASC Topic 815, changes in the fair value of the derivative instrument, to the extent that it is effective, are recorded in Accumulated other comprehensive loss and are subsequently reclassified to earnings as the hedged transaction impacts net income. Any ineffective portion of a cash flow hedge is recognized currently in earnings. For hedges that are entered into as economic hedges, but not accounted for under ASC Topic 815, changes in the fair value of the derivative instrument are recorded in Cost of products sold in the current period. Cash flows from derivative contracts are reported as operating activities on the consolidated statements of cash flows. | ||||||||||||||||||||||||
We enter into fixed-price energy swaps as hedges designed to mitigate the risk of changes in commodity and delivery prices for future forecasted purchase commitments. These fixed-price swaps involve the exchange of net cash settlements, based on changes in the price of the underlying commodity index compared to the fixed price offering, at specified intervals without the exchange of any underlying principal. Historically, we designated our energy hedging relationships as cash flow hedges under ASC Topic 815 with net gains or losses attributable to effective hedging recorded in Accumulated other comprehensive loss and any ineffectiveness recognized in Cost of products sold. | ||||||||||||||||||||||||
One of the requirements that must be evaluated when determining whether a contract qualifies for hedge accounting treatment is whether or not the contract is deemed effective. A contract is deemed effective if the change in the fair value of the derivative contract offsets, within a specified range, the change in the anticipated cash flows of the hedged transaction. The effectiveness of a hedging relationship must be tested at inception and quarterly thereafter. If the relationship fails this test at any time, hedge accounting treatment must be discontinued prospectively. The requirements necessary to apply hedge accounting are complex and must be documented at the inception as well as throughout the term of the contract. If we fail to accurately document these requirements, the contract is not eligible for hedge accounting treatment. The accompanying financial statements reflect the discontinuation of hedge accounting for certain contracts that failed to qualify for hedge accounting during the first quarter of 2012. Additionally, effective April 1, 2012, management elected to de-designate the remaining energy swaps that had previously been designated as cash flow hedges and to discontinue hedge accounting prospectively. As a result, all gains and losses from changes in the fair value of our derivative contracts subsequent to March 31, 2012, are recognized immediately in Cost of products sold. Prior to March 31, 2012, to the extent the hedge was effective, the change in fair value was deferred through Accumulated other comprehensive loss. In 2011, we also de-designated certain energy-related cash flow hedges which ceased to achieve high correlation. The amount recorded in Accumulated other comprehensive loss at the time a contract is de-designated is reclassified into Cost of products sold when the forecasted transaction occurs, or sooner if management determines that the forecasted transaction is probable of not occurring. Energy swaps continue to be utilized as economic hedges designed to mitigate the risk of changes in commodity and delivery prices for future energy purchase commitments. | ||||||||||||||||||||||||
The following table presents information about the volume and fair value amounts of our derivative instruments: | ||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||
(Dollars in thousands) | MMBTUs | Fair Value | MMBTUs | Fair Value | ||||||||||||||||||||
Assets/(Liabilities) | Assets/(Liabilities) | |||||||||||||||||||||||
Derivative contracts not currently designated as hedging instruments | ||||||||||||||||||||||||
Fixed price energy swaps | ||||||||||||||||||||||||
Notional amount | 6,652,070 | 6,194,726 | ||||||||||||||||||||||
Prepaid expenses and other assets | $ | 15,505 | $ | 20 | ||||||||||||||||||||
Intangibles and other assets, net | — | 29 | ||||||||||||||||||||||
Accrued liabilities | (4,959 | ) | (3,909 | ) | ||||||||||||||||||||
Other liabilities | — | (225 | ) | |||||||||||||||||||||
The following tables present information about the effect of our derivative instruments on Accumulated other comprehensive income and the consolidated statements of operations: | ||||||||||||||||||||||||
Loss Recognized | Loss Reclassified | |||||||||||||||||||||||
in Accumulated OCI | from Accumulated OCI | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Derivative contracts designated as hedging instruments | ||||||||||||||||||||||||
Fixed price energy swaps | $ | — | $ | (1,365 | ) | $ | (5,188 | ) | $ | — | $ | (283 | ) | $ | (2,838 | ) | ||||||||
Derivative contracts not currently designated as hedging instruments | ||||||||||||||||||||||||
Fixed price energy swaps | $ | (335 | ) | $ | (5,573 | ) | $ | — | ||||||||||||||||
Loss reclassified from Accumulated OCI to earnings is included in Cost of products sold. | ||||||||||||||||||||||||
Gain (Loss) Recognized on Derivatives | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Derivative contracts designated as hedging instruments | ||||||||||||||||||||||||
Fixed price energy swaps | $ | — | $ | (50 | ) | $ | (1,189 | ) | ||||||||||||||||
Derivative contracts not currently designated as hedging instruments | ||||||||||||||||||||||||
Fixed price energy swaps | $ | 16,117 | $ | (2,973 | ) | $ | (8,643 | ) | ||||||||||||||||
Gain (loss) recognized on derivatives is included in Cost of products sold. | ||||||||||||||||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ' | |||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||
We use fair value measurements for the initial recording of certain assets and liabilities, periodic remeasurement of certain assets and liabilities, and disclosures. Fair value is generally defined as the exit price at which an asset or liability could be exchanged in a current transaction between willing, unrelated parties, other than in a forced or liquidation sale. | ||||||||||||||||
The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions used to value the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: | ||||||||||||||||
▪ | Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. | |||||||||||||||
▪ | Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. | |||||||||||||||
▪ | Level 3: Unobservable inputs reflecting management’s own assumption about the inputs used in pricing the asset or liability at the measurement date. | |||||||||||||||
The following table summarizes the balances of assets and liabilities measured at fair value on a recurring basis: | ||||||||||||||||
(Dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
December 31, 2013 | ||||||||||||||||
Assets: | ||||||||||||||||
Deferred compensation assets | $ | 3,495 | $ | 3,495 | $ | — | $ | — | ||||||||
Commodity swaps | 15,505 | — | 15,505 | — | ||||||||||||
Liabilities: | ||||||||||||||||
Commodity swaps | $ | 4,959 | $ | — | $ | 4,959 | $ | — | ||||||||
December 31, 2012 | ||||||||||||||||
Assets: | ||||||||||||||||
Deferred compensation assets | $ | 3,396 | $ | 3,396 | $ | — | $ | — | ||||||||
Commodity swaps | 49 | — | 49 | — | ||||||||||||
Liabilities: | ||||||||||||||||
Commodity swaps | $ | 4,134 | $ | — | $ | 4,134 | $ | — | ||||||||
Fair values are based on observable market data. | ||||||||||||||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
RELATED PARTY TRANSACTIONS | |
Management Agreement — In connection with the acquisition of our business from International Paper Company on August 1, 2006, we entered into a management agreement with certain affiliates of Apollo Management, L.P., or “Apollo,” relating to the provision of certain financial and strategic advisory services and consulting services, which will expire on August 1, 2018. Under the management agreement, at any time prior to the expiration of the agreement, Apollo has the right to act, in return for additional fees to be mutually agreed by the parties to the management agreement, as our financial advisor or investment banker for any merger, acquisition, disposition, financing or the like if we decide to engage someone to fill such role. In the event that we are not able to come to an agreement with Apollo in connection with such role, at the closing of any merger, acquisition, disposition or financing or any similar transaction, we have agreed to pay Apollo a fee equal to 1% of the aggregate enterprise value (including the aggregate value of equity securities, warrants, rights and options acquired or retained; indebtedness acquired, assumed or refinanced; and any other consideration or compensation paid in connection with such transaction). We agreed to indemnify Apollo and its affiliates and their directors, officers and representatives for losses relating to the services contemplated by the management agreement and the engagement of affiliates of Apollo pursuant to, and the performance by them of the services contemplated by, the management agreement. | |
Distributions to Verso Finance — On January 31, 2013, Verso Holdings exchanged $85.8 million of the outstanding principal and accrued interest on the Senior Unsecured Term Loans for $72.9 million of 11.75% Senior Secured Notes due 2019. The principal and interest of the Senior Unsecured Term Loans remaining after the exchange was funded through cash payments by Verso Holdings. These transactions are reflected as a $94.9 million Return of capital in Verso Holdings' statement of member's equity. | |
Verso Quinnesec Renewable Energy Project — In 2010, Verso Quinnesec REP LLC, an indirect, wholly-owned subsidiary of Verso Holdings, entered into a financing transaction with Chase NMTC Verso Investment Fund, LLC, or the “Investment Fund,” a consolidated variable interest entity (see Note 20 – New Market Tax Credit Entities). Under this arrangement, Verso Holdings loaned $23.3 million to Verso Finance at an interest rate of 6.5% per year and with a maturity of December 29, 2040, and Verso Finance, in turn, loaned the funds on similar terms to the Investment Fund. The Investment Fund then contributed the loan proceeds to certain community development entities, which, in turn, loaned the funds on similar terms to Verso Quinnesec REP LLC as partial financing for the renewable energy project at our mill in Quinnesec, Michigan. As of both December 31, 2013, and 2012, Verso Holdings had a $23.3 million long-term receivable due from Verso Finance, representing these funds and accrued interest receivable of $0.1 million, while the Investment Fund had an outstanding loan of $23.3 million due to Verso Finance and accrued interest payable of $0.1 million. In addition, for each of the years ended December 31, 2013, 2012, and 2011, Verso Holdings recognized interest income from Verso Finance of $1.5 million and the Investment Fund recognized interest expense to Verso Finance of $1.5 million. | |
Verso Paper — Verso Holdings has made distributions to pay expenses on behalf of Verso Paper. Distributions were $0.1 million for 2013, and negligible for 2012, and 2011. In 2012, Verso Paper forgave $0.8 million of advances made during prior years to Verso Holdings which was treated as a capital contribution from a parent. |
RESTRUCTURING_CHARGES
RESTRUCTURING CHARGES | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
RESTRUCTURING CHARGES | ' | |||||||||||||||
RESTRUCTURING CHARGES | ||||||||||||||||
In the third quarter of 2012, we completed a comprehensive assessment of the damage resulting from the fire and explosion at the former paper mill in Sartell, Minnesota, and announced the decision to permanently close the mill. In 2011, we permanently shut down a paper machine at our mill in Bucksport, Maine, and two paper machines at the former Sartell mill. | ||||||||||||||||
The following table details the charges incurred related primarily to the mill closure in 2012 and paper machine shutdowns in 2011 as included in Restructuring charges on our accompanying consolidated statements of operations: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | Cumulative | ||||||||||||
Incurred | ||||||||||||||||
Property and equipment | $ | — | $ | 66,521 | $ | 7,068 | $ | 73,589 | ||||||||
Severance and benefit costs | 688 | 19,373 | 15,004 | 35,065 | ||||||||||||
Write-off of spare parts and inventory | — | 6,934 | 2,278 | 9,212 | ||||||||||||
Trademark impairment | — | 3,693 | — | 3,693 | ||||||||||||
Write-off of purchase obligations and commitments | (594 | ) | 2,420 | — | 1,826 | |||||||||||
Other miscellaneous costs | 1,284 | 3,463 | 114 | 4,861 | ||||||||||||
Total restructuring charges | $ | 1,378 | $ | 102,404 | $ | 24,464 | $ | 128,246 | ||||||||
The following details the changes in our associated restructuring reserve liabilities during the years ended December 31, 2013 and 2012 which are included in Accrued liabilities on our consolidated balance sheets: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||||||
Beginning balance of reserve | $ | 5,098 | $ | 10,763 | ||||||||||||
Severance and benefit costs | 196 | 15,500 | ||||||||||||||
Severance and benefit payments | (3,678 | ) | (22,230 | ) | ||||||||||||
Purchase obligations | — | 2,488 | ||||||||||||||
Payments on purchase obligations | (561 | ) | (1,355 | ) | ||||||||||||
Severance and benefit reserve adjustments | (461 | ) | — | |||||||||||||
Purchase obligation reserve adjustments | (594 | ) | (68 | ) | ||||||||||||
Ending balance of reserve | $ | — | $ | 5,098 | ||||||||||||
Severance and benefit costs incurred in excess of severance and benefits costs accrued in 2013 consist primarily of $0.5 million of salaries and benefit costs for employees continuing to provide services, which were expensed as incurred. In 2012, severance and benefit costs incurred in excess of severance and benefits costs accrued were primarily the result of $2.5 million of pension and workers compensation expense and $1.3 million of salaries and benefit costs for employees continuing to provide services, which were expensed as incurred. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
INCOME TAXES | ' | |||||||||||
INCOME TAXES | ||||||||||||
The following is a summary of the components of the (benefit) provision for income taxes for Verso Paper: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||
Current tax provision (benefit): | ||||||||||||
U.S. federal | $ | — | $ | — | $ | — | ||||||
U.S. state and local | 38 | (96 | ) | 281 | ||||||||
38 | (96 | ) | 281 | |||||||||
Deferred tax (benefit) provision: | ||||||||||||
U.S. federal | (120,029 | ) | (58,563 | ) | (40,038 | ) | ||||||
U.S. state and local | (12,621 | ) | (6,486 | ) | (7,047 | ) | ||||||
(132,650 | ) | (65,049 | ) | (47,085 | ) | |||||||
Valuation allowance | 132,050 | 63,721 | 47,001 | |||||||||
Income tax (benefit) provision | $ | (562 | ) | $ | (1,424 | ) | $ | 197 | ||||
A reconciliation of income tax expense using the statutory federal income tax rate compared with actual income tax expense follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||
Tax at Statutory U.S. Rate of 34% | $ | (38,001 | ) | $ | (59,586 | ) | $ | (46,456 | ) | |||
Increase resulting from: | ||||||||||||
Acquisition transaction costs | 1,756 | — | — | |||||||||
Meals and entertainment | 173 | 197 | 169 | |||||||||
Nondeductible lobbying expenses | 80 | 46 | 38 | |||||||||
Disallowed compensation | — | 680 | — | |||||||||
Goodwill impairment | — | — | 6,356 | |||||||||
Equity award expense | — | — | 55 | |||||||||
Other disallowed expenses | 4 | 36 | 1 | |||||||||
Net permanent differences | 2,013 | 959 | 6,619 | |||||||||
Valuation allowance | 132,050 | 63,721 | 47,001 | |||||||||
Benefit from change in prior tax position | (93,039 | ) | — | — | ||||||||
State income taxes (benefit) | (3,740 | ) | (6,550 | ) | (6,861 | ) | ||||||
Return to provision | 155 | 32 | (106 | ) | ||||||||
Total income tax provision | $ | (562 | ) | $ | (1,424 | ) | $ | 197 | ||||
The following is a summary of the significant components of our deferred tax position: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss and credit carryforwards | $ | 417,536 | $ | 272,575 | ||||||||
Payment-in-kind interest | 10,211 | 11,082 | ||||||||||
Pension | 9,606 | 11,403 | ||||||||||
Compensation reserves | 8,348 | 6,755 | ||||||||||
Inventory reserves | 7,546 | 7,103 | ||||||||||
Inventory capitalization | 2,885 | 2,492 | ||||||||||
Unrealized hedge losses | — | 1,559 | ||||||||||
Bad debt reserves | 841 | 900 | ||||||||||
Other | 2,046 | 1,665 | ||||||||||
Gross deferred tax assets | 459,019 | 315,534 | ||||||||||
Less: valuation allowance | (323,335 | ) | (195,695 | ) | ||||||||
Deferred tax assets, net of allowance | 135,684 | 119,839 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Property, plant, and equipment | $ | (100,507 | ) | $ | (84,241 | ) | ||||||
Cancellation of debt income deferral | (21,878 | ) | (26,127 | ) | ||||||||
Intangible assets | (8,241 | ) | (9,148 | ) | ||||||||
Deferred repair charges | (6,188 | ) | (6,657 | ) | ||||||||
Unrealized hedge income | (4,046 | ) | — | |||||||||
Prepaid expenses | (998 | ) | (440 | ) | ||||||||
Total deferred tax liabilities | (141,858 | ) | (126,613 | ) | ||||||||
Net deferred tax liabilities | $ | (6,174 | ) | $ | (6,774 | ) | ||||||
The valuation allowance for deferred tax assets as of December 31, 2013, 2012, and 2011 was $323.3 million, $195.7 million, and $132.1 million, respectively. The increase in the valuation allowance in 2013 of $127.6 million is primarily attributable to additional federal and state net operating loss carryforwards for alternative fuel credits taken as taxable income in 2009 and 2010 that have now been deemed nontaxable. The increase in the valuation allowance in 2012 of $63.6 million was primarily attributable to additional federal and state losses incurred during 2012. It is less than more likely than not Verso Paper will realize these carryforward benefits in the future. | ||||||||||||
Income tax benefits related to the pension prior service liability have been credited to other comprehensive income. The benefits have been reduced by a valuation allowance of $6.7 million. | ||||||||||||
Verso Paper’s policy is to record interest paid with respect to income taxes as interest expense or interest income, respectively, in the consolidated statements of operations. | ||||||||||||
The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Based on our lack of historical earnings, management believes it is more likely than not that Verso Paper will not realize the benefits of those deductible differences. | ||||||||||||
Verso Paper has federal net operating loss carryforwards totaling approximately $1,112.2 million on December 31, 2013, which begin to expire for the tax year 2025. | ||||||||||||
Verso Paper has state net operating loss carryforwards totaling approximately $703.6 million on December 31, 2013, which begin to expire for the tax year 2014. | ||||||||||||
Verso Paper is subject to various federal, state, and local income tax audits for the tax years ended December 31, 2010 through 2013. As of the current date, there are no ongoing federal or state income tax audits. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Text Block [Abstract] | ' | |||
COMMITMENTS AND CONTINGENCIES | ' | |||
COMMITMENTS AND CONTINGENCIES | ||||
Operating Leases — We have entered into operating lease agreements, which expire at various dates through 2022, related to certain machinery and equipment used in our manufacturing process. Rental expense under operating leases amounted to $9.8 million, $9.2 million, and $7.7 million for the years ended December 31, 2013, 2012, and 2011, respectively. | ||||
The following table, as of December 31, 2013, represents the future minimum rental payments due under non-cancelable operating leases that have initial or remaining lease terms in excess of one year: | ||||
(Dollars in thousands) | ||||
2014 | $ | 5,259 | ||
2015 | 2,674 | |||
2016 | 973 | |||
2017 | 414 | |||
2018 | 162 | |||
Thereafter | 226 | |||
Total | $ | 9,708 | ||
Purchase obligations — We have entered into unconditional purchase obligations in the ordinary course of business for the purchase of certain raw materials, energy, and services. The following table, as of December 31, 2013, summarizes our unconditional purchase obligations. | ||||
(Dollars in thousands) | ||||
2014 | $ | 85,475 | ||
2015 | 44,669 | |||
2016 | 38,613 | |||
2017 | 38,935 | |||
2018 | 37,643 | |||
Thereafter | 129,685 | |||
Total | $ | 375,020 | ||
Severance Arrangements — Under our severance policy, and subject to certain terms and conditions, if the employment of a salaried employee or an hourly employee at the Quinnesec mill is terminated under specified circumstances, the employee is eligible to receive a termination allowance based on the employee’s applicable service and eligible pay. The termination allowance is equal to two weeks of eligible pay for each full or partial year of applicable service, and in any event is not less than four weeks of eligible pay and not more than 52 weeks of eligible pay. We also may elect to provide the employee with other severance benefits such as prorated and/or reduced incentive awards under our incentive plans and programs, subsidized continuation medical and dental insurance coverage, and outplacement services. Our executive officers are also entitled to receive additional severance benefits under their contracts with us in the event of the termination of their employment under certain circumstances. | ||||
Expera Specialty Solutions, LLC (formerly named Thilmany, LLC) — We are a party to a long-term supply agreement with Expera Specialty Solutions, LLC (formerly named Thilmany, LLC), or “Expera,” for the manufacture of specialty paper products on paper machine no. 5 at our Androscoggin mill in Jay, Maine. The agreement, which expires on June 1, 2017, requires Expera to pay us a variable charge for the paper purchased and a fixed charge for the availability of the paper machine. We are responsible for the machine’s routine maintenance, and Expera is responsible for any capital expenditures specific to the machine. Expera has the right to terminate the agreement if certain events occur. | ||||
General Litigation — We are involved from time to time in legal proceedings incidental to the conduct of our business. We do not believe that any liability that may result from these proceedings will have a material adverse effect on our financial statements. |
NEW_MARKET_TAX_CREDIT_ENTITIES
NEW MARKET TAX CREDIT ENTITIES | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
NEW MARKET TAX CREDIT ENTITIES | ' | |||||||||||||||
NEW MARKET TAX CREDIT ENTITIES | ||||||||||||||||
In 2010, we entered into a financing transaction with Chase Community Equity, LLC, or “Chase,” related to a $43 million renewable energy project at our mill in Quinnesec, Michigan, in which Chase made a capital contribution and Verso Finance made a loan to Chase NMTC Verso Investment Fund, LLC, or the “Investment Fund,” under a qualified New Markets Tax Credit, or “NMTC,” program, was provided for in the Community Renewal Tax Relief Act of 2000. | ||||||||||||||||
In connection with the financing, Verso Holdings loaned $23.3 million to Verso Finance at an interest rate of 6.5% per year and with a maturity of December 29, 2040, and Verso Finance, in turn, loaned the funds on similar terms to the Investment Fund. The Investment Fund then contributed the loan proceeds to certain CDEs, which, in turn, loaned the funds on similar terms to Verso Quinnesec REP LLC, our indirect, wholly-owned subsidiary. The proceeds of the loans from the CDEs (including loans representing the capital contribution made by Chase, net of syndication fees) were used to partially fund the renewable energy project. | ||||||||||||||||
By virtue of its contribution, Chase is entitled to substantially all of the benefits derived from the NMTCs. This transaction includes a put/call provision whereby we may be obligated or entitled to repurchase Chase’s interest. We believe that Chase will exercise the put option in December 2017 at the end of the recapture period. The value attributed to the put/call is de minimis. The NMTC is subject to 100% recapture for a period of 7 years as provided in the Internal Revenue Code. We are required to be in compliance with various regulations and contractual provisions that apply to the NMTC arrangement. Non-compliance with applicable requirements could result in projected tax benefits not being realized and, therefore, could require us to indemnify Chase for any loss or recapture of NMTCs related to the financing until such time as our obligation to deliver tax benefits is relieved. We do not anticipate any credit recaptures will be required in connection with this arrangement. | ||||||||||||||||
We have determined that the Investment Fund is a variable interest entity, or “VIE,” of which we are the primary beneficiary and have consolidated it in accordance with the accounting standard for consolidation. Chase’s contribution, net of syndication fees, is included in Other liabilities in the accompanying consolidated balance sheets. Direct costs incurred in structuring the financing arrangement are deferred and will be recognized as expense over the term of the loans. Incremental costs to maintain the structure during the compliance period are recognized as incurred. | ||||||||||||||||
The following table summarizes the impact of the VIE consolidated by Verso Holdings as of December 31, 2013 and 2012: | ||||||||||||||||
VERSO PAPER | VERSO HOLDINGS | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Current assets | $ | 15 | $ | 24 | $ | 15 | $ | 24 | ||||||||
Non-current assets | 85 | 85 | 23,390 | 23,390 | ||||||||||||
Total assets | $ | 100 | $ | 109 | $ | 23,405 | $ | 23,414 | ||||||||
Current liabilities | 15 | 23 | 141 | 149 | ||||||||||||
Long-term debt | — | — | 23,305 | 23,305 | ||||||||||||
Other non-current liabilities | 7,923 | 7,923 | 7,923 | 7,923 | ||||||||||||
Total liabilities | $ | 7,938 | $ | 7,946 | $ | 31,369 | $ | 31,377 | ||||||||
Amounts presented in the condensed consolidated balance sheets and the table above are adjusted for intercompany eliminations. | ||||||||||||||||
The asset held by Verso Holdings represents its investment in the loan to Verso Finance, which is eliminated in consolidation in the accompanying consolidated balance sheet of Verso Paper. The liability of Verso Holdings represents the loan issued by the Investment Fund to Verso Finance, which is also eliminated in consolidation in the accompanying consolidated balance sheet of Verso Paper. |
INFORMATION_BY_INDUSTRY_SEGMEN
INFORMATION BY INDUSTRY SEGMENT | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
INFORMATION BY INDUSTRY SEGMENT | ' | |||||||||||||||||||||||
INFORMATION BY INDUSTRY SEGMENT | ||||||||||||||||||||||||
Our reporting segments correspond to the following three market segments in which we operate: coated papers, including coated groundwood and coated freesheet; hardwood market pulp; and other, consisting of specialty papers. We operate primarily in one geographic segment, North America. Our products are used primarily in media and marketing applications, including catalogs, magazines, and commercial printing applications such as high-end advertising brochures, annual reports, and direct-mail advertising. Our assets are utilized across segments in our integrated mill system and are not identified by segment or reviewed by management on a segment basis. | ||||||||||||||||||||||||
The following table summarizes the industry segments for the years ended December 31, 2013, 2012, and 2011: | ||||||||||||||||||||||||
VERSO PAPER | VERSO HOLDINGS | |||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Net Sales: | ||||||||||||||||||||||||
Coated papers | $ | 1,062,555 | $ | 1,177,050 | $ | 1,418,817 | $ | 1,062,555 | $ | 1,177,050 | $ | 1,418,817 | ||||||||||||
Hardwood market pulp | 156,099 | 140,816 | 150,111 | 156,099 | 140,816 | 150,111 | ||||||||||||||||||
Other | 170,245 | 156,746 | 153,561 | 170,245 | 156,746 | 153,561 | ||||||||||||||||||
Total | $ | 1,388,899 | $ | 1,474,612 | $ | 1,722,489 | $ | 1,388,899 | $ | 1,474,612 | $ | 1,722,489 | ||||||||||||
Operating Income (Loss): | ||||||||||||||||||||||||
Coated papers (1) | $ | 14,546 | (26,166 | ) | (4,726 | ) | $ | 14,546 | (26,115 | ) | 3,470 | |||||||||||||
Hardwood market pulp | 21,540 | 9,215 | 33,357 | 21,540 | 9,215 | 33,357 | ||||||||||||||||||
Other | (2,186 | ) | (15,470 | ) | (12,945 | ) | (2,186 | ) | (15,470 | ) | (12,945 | ) | ||||||||||||
Total | $ | 33,900 | $ | (32,421 | ) | $ | 15,686 | $ | 33,900 | $ | (32,370 | ) | $ | 23,882 | ||||||||||
Depreciation, Amortization, and Depletion: | ||||||||||||||||||||||||
Coated papers | $ | 77,976 | $ | 90,740 | $ | 98,370 | $ | 77,976 | $ | 90,740 | $ | 98,370 | ||||||||||||
Hardwood market pulp | 18,125 | 18,000 | 17,249 | 18,125 | 18,000 | 17,249 | ||||||||||||||||||
Other | 8,629 | 9,438 | 9,676 | 8,629 | 9,438 | 9,676 | ||||||||||||||||||
Total | $ | 104,730 | $ | 118,178 | $ | 125,295 | $ | 104,730 | $ | 118,178 | $ | 125,295 | ||||||||||||
Capital Spending: | ||||||||||||||||||||||||
Coated papers | $ | 33,595 | $ | 57,807 | $ | 65,227 | $ | 33,595 | $ | 57,807 | $ | 65,227 | ||||||||||||
Hardwood market pulp (2) | 5,752 | (325 | ) | 23,695 | 5,752 | (325 | ) | 23,695 | ||||||||||||||||
Other | 1,313 | 2,427 | 1,350 | 1,313 | 2,427 | 1,350 | ||||||||||||||||||
Total | $ | 40,660 | $ | 59,909 | $ | 90,272 | $ | 40,660 | $ | 59,909 | $ | 90,272 | ||||||||||||
-1 | Included here is the effect of $102.4 million in Restructuring charges, offset by $60.6 million in Other operating income, recognized in 2012, which is entirely attributable to the coated papers segment. | |||||||||||||||||||||||
-2 | Included here is the effect, attributable to the pulp segment, of a $14.7 million cash inflow received in 2012 from governmental grants associated with a renewable energy project at our mill in Quinnesec, Michigan, due to spending in 2011. |
CONDENSED_CONSOLIDATING_FINANC
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | ' | |||||||||||||||||||||||||||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | ||||||||||||||||||||||||||||
Presented below are Verso Holdings’ consolidating balance sheets, statements of operations, statements of comprehensive income, and statements of cash flows, as required by Rule 3-10 of Regulation S-X of the Securities Exchange Act of 1934, as amended. The consolidating financial statements have been prepared from Verso Holdings’ financial information on the same basis of accounting as the consolidated financial statements. Investments in our subsidiaries are accounted for under the equity method. Accordingly, the entries necessary to consolidate Verso Holdings’ subsidiaries that guaranteed the obligations under the debt securities described below are reflected in the Eliminations column. | ||||||||||||||||||||||||||||
Verso Holdings, or the “Parent Issuer,” and its direct, 100% owned subsidiary, Verso Paper Inc., or the “Subsidiary Issuer,” are the issuers of 11.75% Senior Secured Notes due 2019, the 11.75% Secured Notes due 2019, the 8.75% Second Priority Senior Secured Notes due 2019, the Second Priority Senior Secured Floating Rate Notes due 2014, and the 11.38% Senior Subordinated Notes due 2016, or collectively, the “Notes.” The Notes are jointly and severally guaranteed on a full and unconditional basis by the Parent Issuer’s direct and indirect, 100% owned subsidiaries, excluding the Subsidiary Issuer, Bucksport Leasing LLC, and Verso Quinnesec REP LLC, or collectively, the “Guarantor Subsidiaries.” Chase NMTC Verso Investment Fund, LLC, a consolidated VIE of Verso Holdings, is a “Non-Guarantor Affiliate.” | ||||||||||||||||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 11,230 | $ | — | $ | 10 | $ | — | $ | 11,240 | ||||||||||||||
Accounts receivable, net | — | — | 104,624 | — | — | — | 104,624 | |||||||||||||||||||||
Inventories | — | — | 137,687 | — | — | — | 137,687 | |||||||||||||||||||||
Assets held for sale | — | — | 50 | — | — | — | 50 | |||||||||||||||||||||
Prepaid expenses and other assets | — | — | 20,616 | — | 5 | — | 20,621 | |||||||||||||||||||||
Current assets | — | — | 274,207 | — | 15 | — | 274,222 | |||||||||||||||||||||
Property, plant, and equipment, net | — | — | 724,063 | 19,171 | — | (288 | ) | 742,946 | ||||||||||||||||||||
Intercompany/affiliate receivable | 1,335,323 | — | 1,393 | — | 31,153 | (1,367,869 | ) | — | ||||||||||||||||||||
Investment in subsidiaries | (439,125 | ) | — | (12,124 | ) | — | — | 451,249 | — | |||||||||||||||||||
Intangibles and other assets, net(1) | — | — | 103,424 | 1,251 | 85 | — | 104,760 | |||||||||||||||||||||
Total assets | $ | 896,198 | $ | — | $ | 1,090,963 | $ | 20,422 | $ | 31,253 | $ | (916,908 | ) | $ | 1,121,928 | |||||||||||||
LIABILITIES AND MEMBER'S EQUITY | ||||||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 88,397 | $ | 7 | $ | 15 | $ | (7 | ) | $ | 88,412 | |||||||||||||
Accrued liabilities | 58,847 | — | 63,462 | — | 126 | — | 122,435 | |||||||||||||||||||||
Current maturities of long-term debt | 13,310 | — | — | — | — | — | 13,310 | |||||||||||||||||||||
Current liabilities | 72,157 | — | 151,859 | 7 | 141 | (7 | ) | 224,157 | ||||||||||||||||||||
Intercompany/affiliate payable | — | — | 1,335,323 | 32,539 | — | (1,367,862 | ) | — | ||||||||||||||||||||
Long-term debt(2) | 1,235,167 | — | — | — | 23,305 | — | 1,258,472 | |||||||||||||||||||||
Other liabilities | — | — | 42,502 | — | 8,087 | (164 | ) | 50,425 | ||||||||||||||||||||
Member's (deficit) equity | (411,126 | ) | — | (438,721 | ) | (12,124 | ) | (280 | ) | 451,125 | (411,126 | ) | ||||||||||||||||
Total liabilities and equity | $ | 896,198 | $ | — | $ | 1,090,963 | $ | 20,422 | $ | 31,253 | $ | (916,908 | ) | $ | 1,121,928 | |||||||||||||
(1) Intangibles and other assets, net of Guarantor Subsidiaries includes $23.3 million of a long-term note receivable from Verso Finance. | ||||||||||||||||||||||||||||
(2) Long-term debt of Non-Guarantor Affiliate is payable to Verso Finance. | ||||||||||||||||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 61,453 | $ | — | $ | 17 | $ | — | $ | 61,470 | ||||||||||||||
Accounts receivable, net | — | — | 101,014 | — | — | — | 101,014 | |||||||||||||||||||||
Inventories | — | — | 131,467 | — | — | — | 131,467 | |||||||||||||||||||||
Assets held for sale | — | — | 24,867 | — | — | — | 24,867 | |||||||||||||||||||||
Prepaid expenses and other assets | — | — | 3,989 | — | 7 | — | 3,996 | |||||||||||||||||||||
Current assets | — | — | 322,790 | — | 24 | — | 322,814 | |||||||||||||||||||||
Property, plant, and equipment, net | — | — | 773,074 | 20,246 | — | (289 | ) | 793,031 | ||||||||||||||||||||
Intercompany/affiliate receivable | 1,251,788 | — | 1,401 | — | 31,153 | (1,284,342 | ) | — | ||||||||||||||||||||
Investment in subsidiaries | (253,714 | ) | — | (11,183 | ) | — | — | 264,897 | — | |||||||||||||||||||
Intangibles and other assets, net(1) | — | — | 115,222 | 1,125 | 85 | — | 116,432 | |||||||||||||||||||||
Total assets | $ | 998,074 | $ | — | $ | 1,201,304 | $ | 21,371 | $ | 31,262 | $ | (1,019,734 | ) | $ | 1,232,277 | |||||||||||||
LIABILITIES AND MEMBER'S EQUITY | ||||||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 92,056 | $ | 7 | $ | 23 | $ | (7 | ) | $ | 92,079 | |||||||||||||
Accrued liabilities | 54,926 | — | 64,069 | — | 126 | — | 119,121 | |||||||||||||||||||||
Liabilities related to assets held for sale | — | — | 176 | — | — | — | 176 | |||||||||||||||||||||
Current liabilities | 54,926 | — | 156,301 | 7 | 149 | (7 | ) | 211,376 | ||||||||||||||||||||
Intercompany/affiliate payable | — | — | 1,251,788 | 32,547 | — | (1,284,335 | ) | — | ||||||||||||||||||||
Long-term debt(2) | 1,163,747 | — | — | — | 23,305 | — | 1,187,052 | |||||||||||||||||||||
Other liabilities | — | — | 46,525 | — | 8,032 | (109 | ) | 54,448 | ||||||||||||||||||||
Member's (deficit) equity | (220,599 | ) | — | (253,310 | ) | (11,183 | ) | (224 | ) | 264,717 | (220,599 | ) | ||||||||||||||||
Total liabilities and equity | $ | 998,074 | $ | — | $ | 1,201,304 | $ | 21,371 | $ | 31,262 | $ | (1,019,734 | ) | $ | 1,232,277 | |||||||||||||
(1) Intangibles and other assets, net of Guarantor Subsidiaries includes $23.3 million of a long-term note receivable from Verso Finance. | ||||||||||||||||||||||||||||
(2) Long-term debt of Non-Guarantor Affiliate is payable to Verso Finance. | ||||||||||||||||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | ||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 1,388,899 | $ | — | $ | — | $ | — | $ | 1,388,899 | ||||||||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | — | — | 1,179,085 | — | — | — | 1,179,085 | |||||||||||||||||||||
Depreciation, amortization, and depletion | — | — | 103,655 | 1,075 | 55 | (55 | ) | 104,730 | ||||||||||||||||||||
Selling, general, and administrative expenses | — | — | 75,452 | (1,707 | ) | 32 | — | 73,777 | ||||||||||||||||||||
Restructuring charges | — | — | 1,378 | — | — | — | 1,378 | |||||||||||||||||||||
Other operating income | — | — | (3,971 | ) | — | — | — | (3,971 | ) | |||||||||||||||||||
Interest income | (138,298 | ) | — | (1,539 | ) | — | (1,546 | ) | 139,844 | (1,539 | ) | |||||||||||||||||
Interest expense | 138,298 | — | 137,083 | 1,574 | 1,515 | (139,844 | ) | 138,626 | ||||||||||||||||||||
Other loss, net | 2,800 | — | 5,165 | — | — | — | 7,965 | |||||||||||||||||||||
Equity in net loss of subsidiaries | (108,352 | ) | — | — | — | — | 108,352 | — | ||||||||||||||||||||
Net loss | $ | (111,152 | ) | $ | — | $ | (107,409 | ) | $ | (942 | ) | $ | (56 | ) | $ | 108,407 | $ | (111,152 | ) | |||||||||
Other comprehensive income | 13,838 | — | 13,838 | — | — | (13,838 | ) | 13,838 | ||||||||||||||||||||
Comprehensive loss | $ | (97,314 | ) | $ | — | $ | (93,571 | ) | $ | (942 | ) | $ | (56 | ) | $ | 94,569 | $ | (97,314 | ) | |||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | ||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 1,474,612 | $ | — | $ | — | $ | — | $ | 1,474,612 | ||||||||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | — | — | 1,272,630 | — | — | — | 1,272,630 | |||||||||||||||||||||
Depreciation, amortization, and depletion | — | — | 117,014 | 1,164 | 55 | (55 | ) | 118,178 | ||||||||||||||||||||
Selling, general, and administrative expenses | — | — | 76,039 | (1,707 | ) | 32 | — | 74,364 | ||||||||||||||||||||
Restructuring charges | — | — | 102,404 | — | — | — | 102,404 | |||||||||||||||||||||
Other operating income | — | — | (60,594 | ) | — | — | — | (60,594 | ) | |||||||||||||||||||
Interest income | (129,801 | ) | — | (1,523 | ) | — | (1,546 | ) | 131,347 | (1,523 | ) | |||||||||||||||||
Interest expense | 129,801 | — | 126,399 | 1,575 | 1,515 | (131,347 | ) | 127,943 | ||||||||||||||||||||
Other loss, net | 8,244 | — | (864 | ) | — | — | — | 7,380 | ||||||||||||||||||||
Equity in net loss of subsidiaries | (157,926 | ) | — | — | — | — | 157,926 | — | ||||||||||||||||||||
Net loss | $ | (166,170 | ) | $ | — | $ | (156,893 | ) | $ | (1,032 | ) | $ | (56 | ) | $ | 157,981 | $ | (166,170 | ) | |||||||||
Other comprehensive income | 3,385 | — | 3,385 | — | — | (3,385 | ) | 3,385 | ||||||||||||||||||||
Comprehensive loss | $ | (162,785 | ) | $ | — | $ | (153,508 | ) | $ | (1,032 | ) | $ | (56 | ) | $ | 154,596 | $ | (162,785 | ) | |||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | ||||||||||||||||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 1,722,489 | $ | — | $ | — | $ | — | $ | 1,722,489 | ||||||||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | — | — | 1,460,290 | — | — | — | 1,460,290 | |||||||||||||||||||||
Depreciation, amortization, and depletion | — | — | 125,121 | 174 | 55 | (55 | ) | 125,295 | ||||||||||||||||||||
Selling, general, and administrative expenses | — | — | 78,038 | (156 | ) | 125 | — | 78,007 | ||||||||||||||||||||
Goodwill impairment | — | — | 10,551 | — | — | — | 10,551 | |||||||||||||||||||||
Restructuring charges | — | — | 24,464 | — | — | — | 24,464 | |||||||||||||||||||||
Interest income | (124,366 | ) | — | (1,560 | ) | (54 | ) | (1,546 | ) | 125,912 | (1,614 | ) | ||||||||||||||||
Interest expense | 124,366 | — | 121,883 | 361 | 1,515 | (125,912 | ) | 122,213 | ||||||||||||||||||||
Other loss (income), net | 26,091 | — | (279 | ) | — | — | — | 25,812 | ||||||||||||||||||||
Equity in net loss of subsidiaries | $ | (96,438 | ) | $ | — | $ | — | $ | — | $ | — | $ | 96,438 | $ | — | |||||||||||||
Net loss | (122,529 | ) | — | (96,019 | ) | (325 | ) | (149 | ) | 96,493 | (122,529 | ) | ||||||||||||||||
Other comprehensive loss | (12,404 | ) | $ | — | (12,404 | ) | $ | — | $ | — | 12,404 | (12,404 | ) | |||||||||||||||
Comprehensive loss | $ | (134,933 | ) | $ | — | $ | (108,423 | ) | $ | (325 | ) | $ | (149 | ) | $ | 108,897 | $ | (134,933 | ) | |||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
Net cash used in operating activities | $ | — | $ | — | $ | (27,609 | ) | $ | 154 | $ | (7 | ) | $ | — | $ | (27,462 | ) | |||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||
Proceeds from sale of assets | — | — | 28,397 | — | — | — | 28,397 | |||||||||||||||||||||
Transfers (to) from restricted cash | — | — | (1,338 | ) | (154 | ) | — | — | (1,492 | ) | ||||||||||||||||||
Return of investment in subsidiaries | 140 | — | (140 | ) | — | — | — | — | ||||||||||||||||||||
Capital expenditures | — | — | (40,660 | ) | — | — | — | (40,660 | ) | |||||||||||||||||||
Net cash provided by (used in) investing activities | 140 | — | (13,741 | ) | (154 | ) | — | — | (13,755 | ) | ||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||
Borrowings on revolving credit facilities | 145,000 | — | — | — | — | — | 145,000 | |||||||||||||||||||||
Payments on revolving credit facilities | (145,000 | ) | — | — | — | — | — | (145,000 | ) | |||||||||||||||||||
Return of capital | (8,653 | ) | — | — | — | — | — | (8,653 | ) | |||||||||||||||||||
Debt issuance costs | (220 | ) | — | — | — | — | — | (220 | ) | |||||||||||||||||||
Cash distributions | (140 | ) | — | — | — | — | — | (140 | ) | |||||||||||||||||||
Repayment of advances to subsidiaries | 8,653 | — | (8,653 | ) | — | — | — | — | ||||||||||||||||||||
Advances from subsidiaries | 220 | — | (220 | ) | — | — | — | — | ||||||||||||||||||||
Net cash used in financing activities | (140 | ) | — | (8,873 | ) | — | — | — | (9,013 | ) | ||||||||||||||||||
Change in cash and cash equivalents | — | — | (50,223 | ) | — | (7 | ) | — | (50,230 | ) | ||||||||||||||||||
Cash and cash equivalents at beginning of period | — | — | 61,453 | — | 17 | — | 61,470 | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 11,230 | $ | — | $ | 10 | $ | — | $ | 11,240 | ||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | — | $ | — | $ | 9,449 | $ | 1,909 | $ | (56 | ) | $ | — | $ | 11,302 | |||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||
Proceeds from insurance settlement | — | — | 51,003 | — | — | — | 51,003 | |||||||||||||||||||||
Proceeds from sale of assets | — | — | 1,731 | — | — | — | 1,731 | |||||||||||||||||||||
Transfers (to) from restricted cash | — | — | 184 | (78 | ) | — | — | 106 | ||||||||||||||||||||
Return of investment in subsidiaries | (694 | ) | — | 694 | — | — | — | — | ||||||||||||||||||||
Capital expenditures | — | — | (68,585 | ) | 8,676 | — | — | (59,909 | ) | |||||||||||||||||||
Net cash (used in) provided by investing activities | (694 | ) | — | (14,973 | ) | 8,598 | — | — | (7,069 | ) | ||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||
Borrowings on revolving credit facilities | 112,500 | — | — | — | — | — | 112,500 | |||||||||||||||||||||
Payments on revolving credit facilities | (112,500 | ) | — | — | — | — | — | (112,500 | ) | |||||||||||||||||||
Proceeds from long-term debt | 341,191 | — | — | — | — | — | 341,191 | |||||||||||||||||||||
Repayments of long-term debt | (354,984 | ) | — | — | — | — | — | (354,984 | ) | |||||||||||||||||||
Debt issuance costs | (24,459 | ) | — | — | — | — | — | (24,459 | ) | |||||||||||||||||||
Contribution from parent | 776 | — | — | — | — | — | 776 | |||||||||||||||||||||
Cash distributions | (82 | ) | — | 10,507 | (10,507 | ) | — | — | (82 | ) | ||||||||||||||||||
Repayment of advances to subsidiaries | 354,984 | — | (354,984 | ) | — | — | — | — | ||||||||||||||||||||
Advances to subsidiaries | (316,732 | ) | — | 316,732 | — | — | — | — | ||||||||||||||||||||
Net cash provided by (used in) financing activities | 694 | — | (27,745 | ) | (10,507 | ) | — | — | (37,558 | ) | ||||||||||||||||||
Change in cash and cash equivalents | — | — | (33,269 | ) | — | (56 | ) | — | (33,325 | ) | ||||||||||||||||||
Cash and cash equivalents at beginning of period | — | — | 94,722 | — | 73 | — | 94,795 | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 61,453 | $ | — | $ | 17 | $ | — | $ | 61,470 | ||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non-Guarantor | Non- Guarantor | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Subsidiary | Affiliate | ||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | — | $ | — | $ | 18,815 | $ | (4,322 | ) | $ | 69 | $ | — | $ | 14,562 | |||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||
Proceeds from sale of fixed assets | — | — | 228 | — | — | — | 228 | |||||||||||||||||||||
Transfers (to) from restricted cash | — | — | (975 | ) | 24,814 | — | — | 23,839 | ||||||||||||||||||||
Capital expenditures | — | — | (69,866 | ) | (20,406 | ) | — | — | (90,272 | ) | ||||||||||||||||||
Return of investment in subsidiaries | 88 | — | (88 | ) | — | — | — | — | ||||||||||||||||||||
Net cash provided by (used in) investing activities | 88 | — | (70,701 | ) | 4,408 | — | — | (66,205 | ) | |||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||
Proceeds from long-term debt | 394,618 | — | — | — | — | — | 394,618 | |||||||||||||||||||||
Repayments of long-term debt | (389,998 | ) | — | — | — | — | — | (389,998 | ) | |||||||||||||||||||
Debt issuance costs | (10,715 | ) | — | 1 | (86 | ) | — | — | (10,800 | ) | ||||||||||||||||||
Cash distributions | (88 | ) | — | — | — | — | — | (88 | ) | |||||||||||||||||||
Repayment of advances to subsidiaries | 389,998 | — | (389,998 | ) | — | — | — | — | ||||||||||||||||||||
Advances to subsidiaries | (383,903 | ) | — | 383,903 | — | — | — | — | ||||||||||||||||||||
Net cash used in financing activities | (88 | ) | — | (6,094 | ) | (86 | ) | — | — | (6,268 | ) | |||||||||||||||||
Change in cash and cash equivalents | — | — | (57,980 | ) | — | 69 | — | (57,911 | ) | |||||||||||||||||||
Cash and cash equivalents at beginning of period | — | — | 152,702 | — | 4 | — | 152,706 | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 94,722 | $ | — | $ | 73 | $ | — | $ | 94,795 | ||||||||||||||
QUARTERLY_DATA
QUARTERLY DATA | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
QUARTERLY DATA | ' | |||||||||||||||||||||||||||||||
QUARTERLY DATA | ||||||||||||||||||||||||||||||||
Verso Paper’s quarterly financial data (unaudited) is as follows: | ||||||||||||||||||||||||||||||||
VERSO PAPER CORP. | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
(Dollars in millions, except per share amounts) | Fourth | Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||||||||
Summary Statement of Operations Data: | ||||||||||||||||||||||||||||||||
Net sales | $ | 350.4 | $ | 374.9 | $ | 330.4 | $ | 333.2 | $ | 361 | $ | 373 | $ | 365.3 | $ | 375.3 | ||||||||||||||||
Gross margin(1) | 62.8 | 69.1 | 36.5 | 41.4 | 50.8 | 71.1 | 42.1 | 38 | ||||||||||||||||||||||||
Cost of products sold | 313.7 | 332.1 | 320.2 | 317.8 | 337.1 | 330 | 355 | 368.7 | ||||||||||||||||||||||||
Selling, general, and administrative expenses | 17.8 | 18 | 19.2 | 18.8 | 18.2 | 17.5 | 19.9 | 18.8 | ||||||||||||||||||||||||
Restructuring charges (2) | 0.1 | 0.1 | 0.2 | 1 | 5.4 | 97 | (0.1 | ) | 0.1 | |||||||||||||||||||||||
Other operating income (3) | — | — | (0.7 | ) | (3.3 | ) | (60.6 | ) | — | — | — | |||||||||||||||||||||
Interest expense | 34.3 | 34.4 | 34.4 | 34.7 | 36.8 | 33.2 | 33.3 | 32.1 | ||||||||||||||||||||||||
Other loss (income), net | 5.1 | 0.1 | 0.1 | 2.6 | (0.1 | ) | — | (22.1 | ) | 29.6 | ||||||||||||||||||||||
Income tax (benefit) expense | (0.6 | ) | — | — | — | (1.3 | ) | — | — | (0.1 | ) | |||||||||||||||||||||
Net (loss) income | (20.0 | ) | (9.8 | ) | (43.0 | ) | (38.4 | ) | 25.5 | (104.7 | ) | (20.7 | ) | (73.9 | ) | |||||||||||||||||
Share Data(4): | ||||||||||||||||||||||||||||||||
(Loss) earnings per share: | ||||||||||||||||||||||||||||||||
Basic | $ | (0.38 | ) | $ | (0.18 | ) | $ | (0.81 | ) | $ | (0.72 | ) | $ | 0.48 | $ | (1.98 | ) | $ | (0.39 | ) | $ | (1.40 | ) | |||||||||
Diluted | (0.38 | ) | (0.18 | ) | (0.81 | ) | (0.72 | ) | 0.48 | (1.98 | ) | (0.39 | ) | (1.40 | ) | |||||||||||||||||
Weighted average shares of common stock outstanding (thousands): | ||||||||||||||||||||||||||||||||
Basic | 53,172 | 53,172 | 53,172 | 52,976 | 52,896 | 52,907 | 52,908 | 52,686 | ||||||||||||||||||||||||
Diluted | 53,172 | 53,172 | 53,172 | 52,976 | 52,913 | 52,907 | 52,908 | 52,686 | ||||||||||||||||||||||||
Closing price per share: | ||||||||||||||||||||||||||||||||
High | $ | 0.85 | $ | 1.13 | $ | 1.29 | $ | 1.65 | $ | 1.67 | $ | 2 | $ | 1.8 | $ | 2.5 | ||||||||||||||||
Low | 0.54 | 0.62 | 1.03 | 0.98 | 1.01 | 1.17 | 1.08 | 0.97 | ||||||||||||||||||||||||
Period-end | 0.63 | 0.76 | 1.15 | 1.32 | 1.07 | 1.6 | 1.18 | 1.88 | ||||||||||||||||||||||||
(1) Gross margin represents net sales less cost of products sold, excluding depreciation, amortization, and depletion. | ||||||||||||||||||||||||||||||||
(2) Represents costs primarily associated with the closure of the former Sartell mill in 2012. | ||||||||||||||||||||||||||||||||
(3) Represents gain on sale of the former Sartell mill and Fiber Farm LLC in 2013 and gain on insurance settlement resulting from the fire at the former Sartell mill in 2012. | ||||||||||||||||||||||||||||||||
(4) No dividends were declared or paid in any of the periods presented. |
SUBSEQUENT_EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENT | ' |
SUBSEQUENT EVENT | |
On January 3, 2014, Verso Paper, Verso Merger Sub Inc., a Delaware corporation and an indirect, wholly owned subsidiary of Verso Paper, or “Merger Sub,” and NewPage Holdings Inc., a Delaware corporation, or “NewPage,” entered into an Agreement and Plan of Merger, or the “Merger Agreement,” pursuant to which Merger Sub will merge with and into NewPage on the terms and subject to the conditions set forth in the Merger Agreement, or the “Merger,” with NewPage surviving the Merger as an indirect, wholly owned subsidiary of Verso. | |
The Merger Agreement provides for a series of transactions pursuant to which equity holders of NewPage will receive (i) $250 million in cash, approximately $243 million of which has been paid to NewPage’s stockholders as a dividend from the proceeds of the NewPage Term Loan Facility, plus the cash actually received by NewPage in respect of any exercises of NewPage stock options between the date of the Merger Agreement and the closing of the Merger; (ii) $650 million aggregate principal amount of New First Lien Notes (valued at face value) to be issued at closing; and (iii) shares of Verso common stock representing 20% (subject to potential upward adjustment to 25% under certain circumstances) of the sum of the outstanding shares of Verso common stock as of immediately prior to closing and the shares, if any, underlying vested, in-the-money stock options as of the signing of the Merger Agreement. The amount of New First Lien Notes to be issued in the Merger is subject to downward adjustment, in an amount not to exceed $27 million in value, if NewPage makes certain restricted payments between September 30, 2013 and the closing of the Merger. If the Merger has not closed by August 31, 2014, and the reason for the failure to close by such date, or any subsequent delay in closing after such date, is solely the result of Verso’s failure to take certain actions to satisfy certain closing conditions, the amount of Verso common stock to be issued as Merger Consideration will increase in monthly increments by up to 5% so that the total amount of Verso common stock issued in the Merger Consideration would be up to 25% of the sum of the outstanding shares as of immediately prior to closing and the shares, if any, underlying vested, in-the-money stock options as of the signing of the Merger Agreement. | |
On January 13, 2014, in accordance with the terms of the Merger Agreement, Verso Holdings and its direct, wholly owned subsidiary, Verso Paper Inc., or collectively the “Issuers,” commenced offers to exchange their new Second Priority Adjustable Senior Secured Notes and new Adjustable Senior Subordinated Notes for any and all of the Issuers’ outstanding 8.75% Second Priority Senior Secured Notes due 2019, or the "Old Second Lien Notes" and 11.38% Senior Subordinated Notes due 2016, or the "Old Subordinated Notes," respectively. The minimum tender conditions for the exchange offers were not satisfied, and the exchange offers and consent solicitations expired by their terms on February 27, 2014, without the Issuers accepting any of the Old Second Lien Notes or Old Subordinated Notes for exchange. We have notified NewPage of our failure to consummate the exchange offers and are exploring all options. | |
On February 28, 2014, Verso Bucksport Power LLC, an indirect, wholly owned subsidiary of Verso Paper, purchased from Bucksport Energy LLC for nominal consideration its 72% undivided interest in the cogeneration power plant located at our Bucksport mill. Following the transaction, Verso Paper owns, through two of our subsidiaries, the entire ownership interest in the cogeneration power plant. |
Schedule_II_Valuation_Accounts
Schedule II - Valuation Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Schedule I - Valuation Accounts | ' | ||||||||||||||||
(Dollars in thousands) | Balance at Beginning of Period | Charged to Cost and Expenses | Charge-off Against Allowances | Balance at End of Period | |||||||||||||
Allowance for uncollectible accounts included in Accounts receivable on the consolidated balance sheets | |||||||||||||||||
Year Ended December 31, 2011 | $ | 785 | $ | 156 | $ | (33 | ) | $ | 908 | ||||||||
Year Ended December 31, 2012 | $ | 908 | $ | 98 | $ | — | $ | 1,006 | |||||||||
Year Ended December 31, 2013 | $ | 1,006 | $ | 263 | $ | (526 | ) | $ | 743 | ||||||||
SUMMARY_OF_BUSINESS_AND_SIGNIF1
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Nature of Business | ' | |||||||
Nature of Business — Within our organization, Verso Paper Corp. is the ultimate parent entity and the sole member of Verso Paper Finance Holdings One LLC, which is the sole member of Verso Paper Finance Holdings LLC, which is the sole member of Verso Paper Holdings LLC. As used in this report, the term “Verso Paper” refers to Verso Paper Corp.; the term “Verso Finance” refers to Verso Paper Finance Holdings LLC; the term “Verso Holdings” refers to Verso Paper Holdings LLC; and the term for any such entity includes its direct and indirect subsidiaries when referring to the entity’s consolidated financial condition or results. Unless otherwise noted, references to “Verso,” “we,” “us,” and “our” refer collectively to Verso Paper and Verso Holdings. Other than Verso Paper’s common stock transactions, Verso Finance’s debt obligation and related financing costs and interest expense, Verso Holdings’ loan to Verso Finance, and the debt obligation of Verso Holdings’ consolidated variable interest entity to Verso Finance, the assets, liabilities, income, expenses and cash flows presented for all periods represent those of Verso Holdings in all material respects. Unless otherwise noted, the information provided pertains to both Verso Paper and Verso Holdings. | ||||||||
We began operations on August 1, 2006, when we acquired the assets and certain liabilities comprising the business of the Coated and Supercalendered Papers Division of International Paper Company, or “International Paper.” We were formed by affiliates of Apollo Global Management, LLC, or “Apollo,” for the purpose of consummating the acquisition from International Paper, or the “Acquisition.” Verso Paper went public on May 14, 2008, with an initial public offering, or “IPO,” of 14 million shares of common stock. | ||||||||
We operate in the following three market segments: coated papers; hardwood market pulp; and other, consisting of specialty papers. Our core business platform is as a producer of coated freesheet and coated groundwood papers. Our products are used primarily in media and marketing applications, including catalogs, magazines, and commercial printing applications such as high-end advertising brochures, annual reports, and direct-mail advertising. | ||||||||
Basis of Presentation | ' | |||||||
Basis of Presentation —This report contains the consolidated financial statements of Verso Paper and Verso Holdings as of December 31, 2013 and 2012, and for the years ended December 31, 2013, 2012, and 2011. Variable interest entities for which Verso Paper or Verso Holdings is the primary beneficiary are also consolidated. Intercompany balances and transactions are eliminated in consolidation. | ||||||||
Use of Estimates | ' | |||||||
Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, or “GAAP,” requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. | ||||||||
Revenue Recognition | ' | |||||||
Revenue Recognition — Sales are net of rebates, allowances, and discounts. Revenue is recognized when the customer takes title and assumes the risks and rewards of ownership, in accordance with Financial Accounting Standards Board, or “FASB,” Accounting Standards Codification, or “ASC,” Topic 605, Revenue Recognition. Revenue is recorded at the time of shipment for terms designated f.o.b., or "free on board," shipping point. For sales transactions designated f.o.b. destination, revenue is recorded when the product is delivered to the customer’s site and when title and risk of loss are transferred. | ||||||||
Shipping and Handling Costs | ' | |||||||
Shipping and Handling Costs — Shipping and handling costs, such as freight to customer destinations, are included in Cost of products sold in the accompanying consolidated statements of operations. These costs, when included in the sales price charged for our products, are recognized in Net sales. | ||||||||
Planned Maintenance Costs | ' | |||||||
Planned Maintenance Costs — Maintenance costs for major planned maintenance shutdowns in excess of $0.5 million are deferred over the period in which the maintenance shutdowns occur and expensed ratably over the period until the next major planned shutdown, since we believe that operations benefit throughout that period from the maintenance work performed. Other maintenance costs are expensed as incurred. | ||||||||
Environmental Costs and Obligations | ' | |||||||
Environmental Costs and Obligations — Costs associated with environmental obligations, such as remediation or closure costs, are accrued when such costs are probable and reasonably estimable. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental obligations are discounted to their present value when the expected cash flows are reliably determinable. | ||||||||
Equity Compensation | ' | |||||||
Equity Compensation — We account for equity awards in accordance with ASC Topic 718, Compensation – Stock Compensation. ASC Topic 718 requires employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at the grant date based on the fair value of the award. We use the straight-line attribution method to recognize share-based compensation over the service period of the award. | ||||||||
Income Taxes | ' | |||||||
Income Taxes — Verso Paper accounts for income taxes using the liability method pursuant to ASC Topic 740, Income Taxes. Under this method, Verso Paper recognizes deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts using enacted tax rates in effect for the year the differences are expected to reverse. Verso Paper records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. Verso Paper evaluates uncertain tax positions annually and considers whether the amounts recorded for income taxes are adequate to address Verso Paper’s tax risk profile. Verso Paper analyzes the potential tax liabilities of specific transactions and tax positions based on management’s judgment as to the expected outcome. Verso Holdings is a limited liability corporation and is not subject to federal income taxes. Verso Holdings accounts for its state income taxes in accordance with ASC Topic 740. | ||||||||
Earnings Per Share | ' | |||||||
Earnings Per Share — Verso Paper computes earnings per share by dividing net income or net loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income or net loss by the weighted average number of shares outstanding, after giving effect to potentially dilutive common share equivalents outstanding during the period. Potentially dilutive common share equivalents are not included in the computation of diluted earnings per share if they are anti-dilutive. | ||||||||
Fair Value of Financial Instruments | ' | |||||||
Fair Value of Financial Instruments — The carrying amounts for cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities, and amounts receivable from or due to related parties approximate fair value due to the short maturity of these instruments. We determine the fair value of our debt based on market information and a review of prices and terms available for similar obligations. See also Note 8, Note 11, Note 14, and Note 15 for additional information regarding the fair value of financial instruments. | ||||||||
Cash and Cash Equivalents | ' | |||||||
Cash and Cash Equivalents — Cash and cash equivalents can include highly liquid investments with a maturity of three months or less at the date of purchase. | ||||||||
Inventories and Replacement Parts and Other Supplies | ' | |||||||
Inventories and Replacement Parts and Other Supplies — Inventory values include all costs directly associated with manufacturing products: materials, labor, and manufacturing overhead. These values are presented at the lower of cost or market. Costs of raw materials, work-in-progress, and finished goods are determined using the first-in, first-out method. Replacement parts and other supplies are stated using the average cost method and are reflected in Inventories and Intangibles and other assets on the consolidated balance sheet (see also Note 3 and Note 6). | ||||||||
Property, Plant, and Equipment | ' | |||||||
Property, Plant, and Equipment — Property, plant, and equipment is stated at cost, net of accumulated depreciation. Interest is capitalized on projects meeting certain criteria and is included in the cost of the assets. The capitalized interest is depreciated over the same useful lives as the related assets. Interest costs of $1.3 million and $3.5 million were capitalized, respectively, in 2013 and 2012. Expenditures for major repairs and improvements are capitalized, whereas normal repairs and maintenance are expensed as incurred. | ||||||||
Depreciation and amortization are computed using the straight-line method for all assets over the assets’ estimated useful lives. Estimated useful lives are as follows: | ||||||||
Years | ||||||||
Building | 20 - 40 | |||||||
Machinery and equipment | 20-Oct | |||||||
Furniture and office equipment | 10-Mar | |||||||
Computer hardware | 6-Mar | |||||||
Leasehold improvements | Over the terms of the lease or | |||||||
the useful life of the | ||||||||
improvements | ||||||||
Goodwill and Intangible Assets | ' | |||||||
Goodwill and Intangible Assets — We account for goodwill and other intangible assets in accordance with ASC Topic 350, Intangibles – Goodwill and Other. Intangible assets primarily consist of trademarks, customer-related intangible assets, and patents obtained through business acquisitions. The useful lives of trademarks were determined to be indefinite and, therefore, these assets are not amortized. Customer-related intangible assets are amortized over their estimated useful lives of approximately twenty-five years. Patents are amortized over their remaining legal lives of ten years. The impairment evaluation of the carrying amount of goodwill and other intangible assets with indefinite lives is conducted annually or more frequently if events or changes in circumstances indicate that an asset might be impaired. | ||||||||
Trademarks are evaluated by comparing their fair value to their carrying values. In performing our annual impairment test during the fourth quarter of 2013, we determined that the carrying value of our trademarks exceeded their fair value, and recognized an impairment charge of $1.6 million based on a projected reduction of revenues driven primarily by a decline in U.S. demand. The trademark impairment charge is included in Cost of products sold on our accompanying consolidated statement of operations for the year ended December 31, 2013. | ||||||||
During 2012, based on a projected reduction of revenue primarily as a result of a reduction in production capacity from the closure of the Sartell mill, we recognized a trademarks impairment charge of $3.7 million, which was included in Restructuring charges on our accompanying consolidated statements of operations. | ||||||||
Goodwill was evaluated at the reporting unit level and allocated to the “Coated” segment. The evaluation for goodwill impairment was performed by applying a two-step test. The first step was to compare the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit was less than its carrying amount, goodwill was considered impaired and the loss was measured by performing step two, which involved using a hypothetical purchase price allocation to determine the implied fair value of the goodwill and comparing it to the carrying value of the goodwill. An impairment loss was recognized to the extent the implied fair value of the goodwill was less than the carrying amount of the goodwill. In 2011, Verso Paper recognized a goodwill impairment charge of $18.7 million and Verso Holdings recognized a goodwill impairment charge of $10.5 million. | ||||||||
Impairment of Long-Lived Assets | ' | |||||||
Impairment of Long-Lived Assets — Long-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances that indicate that the carrying value of the assets may not be recoverable, as measured by comparing their net book value to the estimated undiscounted future cash flows generated by their use. Impaired assets are recorded at estimated fair value, determined principally using discounted cash flows. | ||||||||
In 2012, based on a comprehensive assessment of the damage resulting from the fire and explosion at our former paper mill in Sartell, Minnesota, we recorded a fixed asset impairment charge of $66.5 million, which was included in Restructuring charges (see also Note 17) on our accompanying consolidated statements of operations. The impairment charge was calculated based on the excess of carrying value over the estimated fair value of the site, which was estimated based on preliminary negotiations with potential buyers received subsequent to our decision to shut down the mill. | ||||||||
Allowance for Doubtful Accounts | ' | |||||||
Allowance for Doubtful Accounts — We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. We manage credit risk related to our trade accounts receivable by continually monitoring the creditworthiness of our customers to whom credit is granted in the normal course of business. Trade accounts receivable balances for sales to unaffiliated customers were approximately $100.7 million at December 31, 2013, compared to $97.0 million at December 31, 2012. | ||||||||
We establish our allowance for doubtful accounts based upon factors surrounding the credit risks of specific customers, historical trends, and other information. Based on this assessment, an allowance is maintained that represents what is believed to be ultimately uncollectible from such customers. | ||||||||
Deferred Financing Costs | ' | |||||||
Deferred Financing Costs — We capitalize costs incurred in connection with borrowings or establishment of credit facilities. These costs are amortized as an adjustment to interest expense over the life of the borrowing or life of the credit facilities using the effective interest method. In the case of early debt principal repayments, we adjust the value of the corresponding deferred financing costs with a charge to interest expense, and similarly adjust the future amortization expense. | ||||||||
Asset Retirement Obligations | ' | |||||||
Asset Retirement Obligations — In accordance with ASC Topic 410, Asset Retirement and Environmental Obligations, a liability and an asset are recorded equal to the present value of the estimated costs associated with the retirement of long-lived assets where a legal or contractual obligation exists. The liability is accreted over time, and the asset is depreciated over its useful life. Our asset retirement obligations under this standard relate to closure and post-closure costs for landfills. Revisions to the liability could occur due to changes in the estimated costs or timing of closure or possible new federal or state regulations affecting the closure. | ||||||||
As of December 31, 2013 and 2012, we had $0.8 million of restricted cash included in Intangibles and other assets in the accompanying consolidated balance sheet related to an asset retirement obligation in the state of Michigan. This cash deposit is required by the state and may only be used for the future closure of a landfill. | ||||||||
The following table presents an analysis related to our asset retirement obligations included in Other liabilities in the accompanying consolidated balance sheets: | ||||||||
Year Ended December 31, | ||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Asset retirement obligations, January 1 | $ | 11,854 | $ | 11,233 | ||||
Liabilities incurred | 1,546 | — | ||||||
Settlement of existing liabilities | (903 | ) | (449 | ) | ||||
Accretion expense | 887 | 827 | ||||||
Adjustment to existing liabilities | (190 | ) | 419 | |||||
Liabilities related to assets held for sale | — | (176 | ) | |||||
Asset retirement obligations | 13,194 | 11,854 | ||||||
Less: Current portion | (486 | ) | — | |||||
Non-current portion of asset retirement obligations, December 31 | $ | 12,708 | $ | 11,854 | ||||
In addition to the above obligations, we may be required to remove certain materials from our facilities or to remediate them in accordance with current regulations that govern the handling of certain hazardous or potentially hazardous materials. At this time, any such obligations have an indeterminate settlement date, and we believe that adequate information does not exist to reasonably estimate any such potential obligations. Accordingly, we will record a liability for such remediation when sufficient information becomes available to estimate the obligation. | ||||||||
Derivative Financial Instruments | ' | |||||||
Derivative Financial Instruments — Derivative financial instruments are recognized as assets or liabilities in the financial statements and measured at fair value. The effective portion of the changes in the fair value of derivative financial instruments that qualify and are designated as cash flow hedges are recorded in Accumulated other comprehensive loss. Changes in the fair value of derivative financial instruments that are entered into as economic hedges are recognized in current earnings. We use derivative financial instruments to manage our exposure to energy prices and interest rate risk. Effective April 1, 2012, management elected to de-designate the remaining energy swaps that had previously been designated as cash flow hedges and to discontinue hedge accounting prospectively. | ||||||||
Pension Benefits | ' | |||||||
Pension Benefits — Pension plans cover substantially all of our employees. The defined benefit plans are funded in conformity with the funding requirements of applicable government regulations. Prior service costs are amortized on a straight-line basis over the estimated remaining service periods of employees. Certain employees are covered by defined contribution plans. Our contributions to these plans are based on a percentage of employees’ compensation or employees’ contributions. These plans are funded on a current basis. |
SUMMARY_OF_BUSINESS_AND_SIGNIF2
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Schedule of Estimated Useful Lives of Property, Plant, and Equipment | ' | |||||||||||
Depreciation and amortization are computed using the straight-line method for all assets over the assets’ estimated useful lives. Estimated useful lives are as follows: | ||||||||||||
Years | ||||||||||||
Building | 20 - 40 | |||||||||||
Machinery and equipment | 20-Oct | |||||||||||
Furniture and office equipment | 10-Mar | |||||||||||
Computer hardware | 6-Mar | |||||||||||
Leasehold improvements | Over the terms of the lease or | |||||||||||
the useful life of the | ||||||||||||
improvements | ||||||||||||
Asset Retirement Obligations Included in Other Liabilities | ' | |||||||||||
The following table presents an analysis related to our asset retirement obligations included in Other liabilities in the accompanying consolidated balance sheets: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||
Asset retirement obligations, January 1 | $ | 11,854 | $ | 11,233 | ||||||||
Liabilities incurred | 1,546 | — | ||||||||||
Settlement of existing liabilities | (903 | ) | (449 | ) | ||||||||
Accretion expense | 887 | 827 | ||||||||||
Adjustment to existing liabilities | (190 | ) | 419 | |||||||||
Liabilities related to assets held for sale | — | (176 | ) | |||||||||
Asset retirement obligations | 13,194 | 11,854 | ||||||||||
Less: Current portion | (486 | ) | — | |||||||||
Non-current portion of asset retirement obligations, December 31 | $ | 12,708 | $ | 11,854 | ||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||
The following table summarizes the changes in Accumulated other comprehensive income (loss) by balance type for the year ended December 31, 2013: | ||||||||||||
(Dollars in thousands) | Losses on Derivative Financial Instruments | Defined Benefit Pension Items | Total | |||||||||
Accumulated other comprehensive loss as of December 31, 2012 | $ | (335 | ) | $ | (24,938 | ) | $ | (25,273 | ) | |||
Amounts reclassified from accumulated other comprehensive income (loss) to Cost of products sold | 335 | 2,282 | 2,617 | |||||||||
Pension liability adjustment | — | 11,221 | 11,221 | |||||||||
Net decrease in other comprehensive loss | 335 | 13,503 | 13,838 | |||||||||
Accumulated other comprehensive income (loss), net of tax, as of December 31, 2013 | $ | — | $ | (11,435 | ) | $ | (11,435 | ) | ||||
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories by Major Category | ' | |||||||
December 31, | ||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Raw materials | $ | 25,843 | $ | 25,747 | ||||
Woodyard logs | 6,602 | 5,942 | ||||||
Work-in-process | 14,738 | 17,629 | ||||||
Finished goods | 60,919 | 55,909 | ||||||
Replacement parts and other supplies | 29,585 | 26,240 | ||||||
Inventories | $ | 137,687 | $ | 131,467 | ||||
ASSETS_HELD_FOR_SALE_AND_INSUR1
ASSETS HELD FOR SALE AND INSURANCE PROCEEDS (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Property, Plant and Equipment [Abstract] | ' | ||||||
Schedule of Assets and liabilities Held for Sale | ' | ||||||
Assets and liabilities held for sale at December 31, 2013 and 2012, respectively, were comprised of the following: | |||||||
December 31, | December 31, | ||||||
(Dollars in thousands) | 2013 | 2012 | |||||
Property, plant, and equipment, net (1) | $ | — | $ | 12,124 | |||
Reforestation (1) | 50 | 12,743 | |||||
Assets held for sale | $ | 50 | $ | 24,867 | |||
Asset retirement obligations | $ | — | $ | 176 | |||
Liabilities related to assets held for sale | $ | — | $ | 176 | |||
(1) Recorded at carrying value as the expected proceeds less costs to sell exceed carrying value. |
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT, AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant, and Equipment | ' | |||||||
Property, plant, and equipment were as follows: | ||||||||
December 31, | ||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Land and land improvements | $ | 30,547 | $ | 28,985 | ||||
Building and leasehold improvements | 154,521 | 153,769 | ||||||
Machinery, equipment, and other | 1,301,368 | 1,278,427 | ||||||
Construction-in-progress | 37,100 | 11,017 | ||||||
Property, plant, and equipment, gross | 1,523,536 | 1,472,198 | ||||||
Accumulated depreciation | (780,590 | ) | (679,167 | ) | ||||
Property, plant, and equipment, net | $ | 742,946 | $ | 793,031 | ||||
INTANGIBLES_AND_OTHER_ASSETS_T
INTANGIBLES AND OTHER ASSETS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Intangibles and Other Assets | ' | |||||||||||||||
Intangibles and other assets consist of the following: | ||||||||||||||||
VERSO PAPER | VERSO HOLDINGS | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Amortizable intangible assets: | ||||||||||||||||
Customer relationships, net of accumulated amortization of $8.2 million on December 31, 2013, and $7.5 million on December 31, 2012 | $ | 5,120 | $ | 5,820 | $ | 5,120 | $ | 5,820 | ||||||||
Patents, net of accumulated amortization of $0.9 million on December 31, 2013, and $0.7 million on December 31, 2012 | 296 | 411 | 296 | 411 | ||||||||||||
Total amortizable intangible assets | 5,416 | 6,231 | 5,416 | 6,231 | ||||||||||||
Unamortizable intangible assets: | ||||||||||||||||
Trademarks | 16,180 | 17,780 | 16,180 | 17,780 | ||||||||||||
Other assets: | ||||||||||||||||
Financing costs, net of accumulated amortization of $13.6 million on December 31, 2013, and $8.2 million on December 31, 2012 | 28,761 | 33,909 | 28,761 | 33,909 | ||||||||||||
Deferred major repair | 16,218 | 17,473 | 16,218 | 17,473 | ||||||||||||
Replacement parts, net | 3,465 | 3,679 | 3,465 | 3,679 | ||||||||||||
Loan to affiliate | — | — | 23,305 | 23,305 | ||||||||||||
Restricted cash | 4,946 | 3,454 | 4,946 | 3,454 | ||||||||||||
Other | 6,469 | 10,601 | 6,469 | 10,601 | ||||||||||||
Total other assets | 59,859 | 69,116 | 83,164 | 92,421 | ||||||||||||
Intangibles and other assets | $ | 81,455 | $ | 93,127 | $ | 104,760 | $ | 116,432 | ||||||||
Estimated Future Amortization Expense for Intangible Assets Over Next Five Years | ' | |||||||||||||||
The estimated future amortization expense for intangible assets over the next five years is as follows: | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
2014 | $ | 715 | ||||||||||||||
2015 | 615 | |||||||||||||||
2016 | 567 | |||||||||||||||
2017 | 400 | |||||||||||||||
2018 | 300 | |||||||||||||||
ACCRUED_LIABILITIES_Tables
ACCRUED LIABILITIES (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Payables and Accruals [Abstract] | ' | |||||||||||||||
Schedule of Accrued Liabilities | ' | |||||||||||||||
A summary of accrued liabilities is as follows: | ||||||||||||||||
VERSO PAPER | VERSO HOLDINGS | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Accrued interest | $ | 58,852 | $ | 56,013 | $ | 58,977 | $ | 55,060 | ||||||||
Payroll and employee benefit costs | 40,054 | 37,721 | 40,054 | 37,721 | ||||||||||||
Accrued sales rebates | 11,573 | 11,138 | 11,573 | 11,138 | ||||||||||||
Derivatives | 4,959 | 3,909 | 4,959 | 3,909 | ||||||||||||
Accrued taxes - other than income | 1,456 | 1,584 | 1,431 | 1,478 | ||||||||||||
Restructuring costs | — | 5,098 | — | 5,098 | ||||||||||||
Freight and other | 5,441 | 4,717 | 5,441 | 4,717 | ||||||||||||
Accrued liabilities | $ | 122,335 | $ | 120,180 | $ | 122,435 | $ | 119,121 | ||||||||
DEBT_Tables
DEBT (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||
Summary of Long-Term Debt | ' | |||||||||||||||||||||||
A summary of long-term debt is as follows: | ||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||
(Dollars in thousands) | Original | Interest | Balance | Fair | Balance | Fair | ||||||||||||||||||
Maturity | Rate | Value | Value | |||||||||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||
Revolving Credit Facilities | 5/4/17 | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
11.75% Senior Secured Notes (1) | 1/15/19 | 11.75 | % | 426,076 | 448,341 | 341,493 | 361,388 | |||||||||||||||||
11.75% Secured Notes | 1/15/19 | 11.75 | % | 271,573 | 206,629 | 271,573 | 198,248 | |||||||||||||||||
8.75% Second Priority Senior Secured Notes (2) | 2/1/19 | 8.75 | % | 395,018 | 130,363 | 394,871 | 159,960 | |||||||||||||||||
Second Priority Senior Secured Floating Rate Notes | 8/1/14 | 3.99 | % | 13,310 | 7,986 | 13,310 | 9,650 | |||||||||||||||||
11.38% Senior Subordinated Notes | 8/1/16 | 11.38 | % | 142,500 | 64,125 | 142,500 | 58,995 | |||||||||||||||||
Chase NMTC Verso Investment Fund LLC | ||||||||||||||||||||||||
Loan from Verso Paper Finance Holdings LLC | 12/29/40 | 6.5 | % | 23,305 | 23,305 | 23,305 | 23,305 | |||||||||||||||||
Total debt for Verso Paper Holdings LLC | 1,271,782 | 880,749 | 1,187,052 | 811,546 | ||||||||||||||||||||
Verso Paper Finance Holdings LLC | ||||||||||||||||||||||||
Senior Unsecured Term Loan | 2/1/13 | — | % | — | — | 93,212 | 91,348 | |||||||||||||||||
Loan from Verso Paper Holdings LLC | 12/29/40 | 6.5 | % | 23,305 | 23,305 | 23,305 | 23,305 | |||||||||||||||||
Less current maturities of long-term debt | (13,310 | ) | (7,986 | ) | (8,501 | ) | (8,331 | ) | ||||||||||||||||
Less loans from affiliates | (46,610 | ) | (46,610 | ) | (46,610 | ) | (46,610 | ) | ||||||||||||||||
Total long-term debt for Verso Paper Corp. | $ | 1,235,167 | $ | 849,458 | $ | 1,248,458 | $ | 871,258 | ||||||||||||||||
(1) Par value of $417,882 on December 31, 2013 and $345,000 on December 31, 2012. | ||||||||||||||||||||||||
(2) Par value of $396,000 on December 31, 2013 and 2012. | ||||||||||||||||||||||||
Interest Expense Related to Long Term Debt and Cash Interests Payments on Long-Term Debt | ' | |||||||||||||||||||||||
Amounts included in interest expense related to debt and amounts of cash interest payments on debt are as follows: | ||||||||||||||||||||||||
VERSO PAPER | VERSO HOLDINGS | |||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Interest expense | $ | 133,599 | $ | 133,644 | $ | 124,895 | $ | 134,527 | $ | 126,486 | $ | 120,861 | ||||||||||||
Cash interest paid | 129,467 | 113,334 | 115,651 | 130,830 | 114,849 | 117,043 | ||||||||||||||||||
Debt issuance cost amortization(1) | 5,398 | 5,317 | 5,396 | 5,368 | 4,957 | 5,036 | ||||||||||||||||||
(1) Amortization of debt issuance cost is included in interest expense. | ||||||||||||||||||||||||
Payments Required Under Long-Term Debt | ' | |||||||||||||||||||||||
The payments required under the debt listed above during the years following December 31, 2013, are set forth below: | ||||||||||||||||||||||||
(Dollars in thousands) | VERSO | VERSO | ||||||||||||||||||||||
PAPER | HOLDINGS | |||||||||||||||||||||||
2014 | 13,310 | 13,310 | ||||||||||||||||||||||
2015 | — | — | ||||||||||||||||||||||
2016 | 142,500 | 142,500 | ||||||||||||||||||||||
2017 | — | — | ||||||||||||||||||||||
2018 | — | — | ||||||||||||||||||||||
2019 and thereafter | 1,085,455 | 1,108,760 | ||||||||||||||||||||||
Total debt | $ | 1,241,265 | $ | 1,264,570 | ||||||||||||||||||||
OTHER_LIABILITIES_Tables
OTHER LIABILITIES (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Payables and Accruals [Abstract] | ' | |||||||||||||||
Schedule of Other Liabilities | ' | |||||||||||||||
Other liabilities consist of the following: | ||||||||||||||||
VERSO PAPER | VERSO HOLDINGS | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Pension benefit obligation | $ | 25,231 | $ | 30,416 | $ | 25,231 | $ | 30,416 | ||||||||
Asset retirement obligations | 12,708 | 11,854 | 12,708 | 11,854 | ||||||||||||
Non-controlling interests | 7,923 | 7,923 | 7,923 | 7,923 | ||||||||||||
Deferred income taxes | 6,174 | 6,774 | — | — | ||||||||||||
Deferred compensation | 3,495 | 3,396 | 3,495 | 3,396 | ||||||||||||
Derivatives | — | 225 | — | 225 | ||||||||||||
Other | 1,068 | 635 | 1,068 | 634 | ||||||||||||
Other liabilities | $ | 56,599 | $ | 61,223 | $ | 50,425 | $ | 54,448 | ||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Reconciliation of Basic and Diluted Earnings (Loss) per Common Share | ' | |||||||||||
The following table provides a reconciliation of basic and diluted loss per common share of Verso Paper: | ||||||||||||
VERSO PAPER | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands, except per share amounts) | 2013 | 2012 | 2011 | |||||||||
Net income (loss) available to common shareholders | $ | (111,206 | ) | $ | (173,829 | ) | $ | (137,061 | ) | |||
Weighted average common stock outstanding | 52,583 | 52,365 | 52,207 | |||||||||
Weighted average restricted stock | 541 | 485 | 388 | |||||||||
Weighted average common shares outstanding - basic | 53,124 | 52,850 | 52,595 | |||||||||
Dilutive shares from stock options | — | — | — | |||||||||
Weighted average common shares outstanding - diluted | 53,124 | 52,850 | 52,595 | |||||||||
Basic loss per share | $ | (2.09 | ) | $ | (3.29 | ) | $ | (2.61 | ) | |||
Diluted loss per share | $ | (2.09 | ) | $ | (3.29 | ) | $ | (2.61 | ) |
RETIREMENT_PLANS_Tables
RETIREMENT PLANS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Components of Net Periodic Benefit Cost | ' | |||||||||||||||
The following table summarizes the components of net periodic pension cost for the years ended December 31, 2013, 2012, and 2011: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||||||
Components of net periodic pension cost: | ||||||||||||||||
Service cost | $ | 6,613 | $ | 7,082 | $ | 6,694 | ||||||||||
Interest cost | 3,115 | 2,876 | 2,521 | |||||||||||||
Expected return on plan assets | (3,303 | ) | (2,791 | ) | (2,234 | ) | ||||||||||
Amortization of actuarial loss | 1,631 | 1,648 | 393 | |||||||||||||
Amortization of prior service cost | 651 | 740 | 1,176 | |||||||||||||
Curtailment | — | 1,517 | 1,921 | |||||||||||||
Net periodic pension cost | $ | 8,707 | $ | 11,072 | $ | 10,471 | ||||||||||
Detail of Prior Service Cost and Net Actuarial Loss Recognized In Accumulated Other Comprehensive Income | ' | |||||||||||||||
The following table provides detail on prior service cost and net actuarial loss recognized in Accumulated other comprehensive loss at December 31, 2013 and 2012: | ||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||||||
Amounts recognized in Accumulated other comprehensive loss: | ||||||||||||||||
Prior service cost | $ | 1,923 | $ | 2,574 | ||||||||||||
Net actuarial loss | 9,512 | 22,364 | ||||||||||||||
Reconciliation of Plans' Benefit Obligation, Plan Assets and Funded Status | ' | |||||||||||||||
The following table sets forth a reconciliation of the plans’ benefit obligation, plan assets and funded status at December 31, 2013 and 2012: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||||||
Change in Projected Benefit Obligation: | ||||||||||||||||
Benefit obligation at beginning of period | $ | 81,944 | $ | 67,686 | ||||||||||||
Service cost | 6,613 | 7,082 | ||||||||||||||
Interest cost | 3,115 | 2,876 | ||||||||||||||
Actuarial (gain) loss | (10,472 | ) | 4,915 | |||||||||||||
Benefits paid | (2,499 | ) | (1,560 | ) | ||||||||||||
Curtailment | — | 945 | ||||||||||||||
Benefit obligation on December 31 | $ | 78,701 | $ | 81,944 | ||||||||||||
Change in Plan Assets: | ||||||||||||||||
Plan assets at fair value, beginning of fiscal year | $ | 51,528 | $ | 38,883 | ||||||||||||
Actual net return on plan assets | 4,052 | 3,520 | ||||||||||||||
Employer contributions | 389 | 10,685 | ||||||||||||||
Benefits paid | (2,499 | ) | (1,560 | ) | ||||||||||||
Plan assets at fair value, end of fiscal year | $ | 53,470 | $ | 51,528 | ||||||||||||
Unfunded projected benefit obligation recognized in other liabilities on the consolidated balance sheets | $ | (25,231 | ) | $ | (30,416 | ) | ||||||||||
Summary of Expected Future Pension Benefit Payments | ' | |||||||||||||||
The following table summarizes expected future pension benefit payments: | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
2014 | $ | 2,331 | ||||||||||||||
2015 | 2,561 | |||||||||||||||
2016 | 2,829 | |||||||||||||||
2017 | 3,165 | |||||||||||||||
2018 | 3,592 | |||||||||||||||
2019-2023 | 25,849 | |||||||||||||||
Actuarial Assumptions Used In Defined Benefit Pension Plans | ' | |||||||||||||||
The actuarial assumptions used in the defined benefit pension plans were as follows: | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Weighted average assumptions used to determine benefit obligations as of December 31: | ||||||||||||||||
Discount rate | 4.75 | % | 3.8 | % | 4.3 | % | ||||||||||
Rate of compensation increase | N/A | N/A | N/A | |||||||||||||
Weighted average assumptions used to determine net periodic pension cost for the fiscal year: | ||||||||||||||||
Discount rate | 3.84 | 4.3 | 5.4 | |||||||||||||
Rate of compensation increase | N/A | N/A | N/A | |||||||||||||
Expected long-term return on plan assets | 6.5 | 6.5 | 6.5 | |||||||||||||
Schedule of Pension Plan's Asset Allocation | ' | |||||||||||||||
The following table provides the pension plans’ asset allocation on December 31, 2013 and 2012: | ||||||||||||||||
Allocation of Plan Assets | ||||||||||||||||
2013 | Allocation on | 2012 | Allocation on | |||||||||||||
Targeted Allocation | 31-Dec-13 | Targeted Allocation | 31-Dec-12 | |||||||||||||
Other securities: | 60% | 70% - 80% | ||||||||||||||
Money market funds | — | % | 1 | % | ||||||||||||
Fixed income funds | 48 | % | 66 | % | ||||||||||||
Other funds | 10 | % | 1 | % | ||||||||||||
Equity securities: | 40% | 20% - 30% | ||||||||||||||
Domestic equity funds - large cap | 24 | % | 22 | % | ||||||||||||
Domestic equity funds - small cap | 12 | % | 5 | % | ||||||||||||
International equity funds | 6 | % | 5 | % | ||||||||||||
Schedule of Pension Plans Assets at Fair Value | ' | |||||||||||||||
The following table sets forth by level, within the fair value hierarchy, the pension plans’ assets at fair value as of December 31, 2013 and 2012. | ||||||||||||||||
(Dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
December 31, 2013 | ||||||||||||||||
Fixed income funds | $ | 25,764 | $ | 25,764 | $ | — | $ | — | ||||||||
Domestic equity funds - large cap | 13,086 | 13,086 | — | — | ||||||||||||
Domestic equity funds - small cap | 6,214 | 6,214 | — | — | ||||||||||||
International equity funds | 3,167 | 3,167 | — | — | ||||||||||||
Money market funds | — | — | — | — | ||||||||||||
Other funds | 5,239 | 5,239 | — | — | ||||||||||||
Total assets at fair value | $ | 53,470 | $ | 53,470 | $ | — | $ | — | ||||||||
December 31, 2012 | ||||||||||||||||
Fixed income funds | $ | 34,021 | $ | 34,021 | $ | — | $ | — | ||||||||
Domestic equity funds - large cap | 11,346 | — | 11,346 | — | ||||||||||||
Domestic equity funds - small cap | 2,693 | 2,693 | — | — | ||||||||||||
International equity funds | 2,331 | 1,164 | 1,167 | — | ||||||||||||
Money market funds | 632 | 632 | — | — | ||||||||||||
Other funds | 505 | 505 | — | — | ||||||||||||
Total assets at fair value | $ | 51,528 | $ | 39,015 | $ | 12,513 | $ | — | ||||||||
Fair value is determined based on the net asset value of units held by the plan at period end. |
EQUITY_AWARDS_Tables
EQUITY AWARDS (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||
Summary of Stock Option Plan Activity | ' | ||||||||||||||
A summary of stock option plan activity (including the performance-based options) for the years ended December 31, 2013, 2012, and 2011 is provided below: | |||||||||||||||
Options | Weighted | Weighted | Weighted | Aggregate | |||||||||||
Outstanding | Average | Average | Average | Intrinsic | |||||||||||
Exercise | Grant Date | Remaining | Value | ||||||||||||
Price | Fair Value | Contractual | (in thousands) | ||||||||||||
Life (in years) | |||||||||||||||
December 31, 2010(1) | 1,388,746 | 3.36 | 2.05 | ||||||||||||
Options granted | 430,855 | 5.63 | 4.13 | ||||||||||||
Forfeited | (32,295 | ) | 3.97 | 2.68 | |||||||||||
Exercised | (5,807 | ) | 2.88 | 2 | |||||||||||
31-Dec-11 | 1,781,499 | 3.9 | 2.59 | ||||||||||||
Options granted | 2,193,701 | 1.46 | 1.07 | ||||||||||||
Forfeited | (90,007 | ) | 3.48 | 2.52 | |||||||||||
31-Dec-12 | 3,885,193 | 2.53 | 1.73 | ||||||||||||
Options granted | 564,442 | 1.29 | 0.93 | ||||||||||||
Forfeited | (15,929 | ) | 1.53 | 1.09 | |||||||||||
December 31, 2013(2) | 4,433,706 | 2.38 | 1.63 | 4.6 | |||||||||||
Options exercisable on December 31, 2013(2) | 2,304,798 | 3.03 | 3.8 | $ | — | ||||||||||
Options expected to vest as of December 31, 2013 | 2,128,908 | 1.68 | — | ||||||||||||
-1 | On December 31, 2010, there were an additional 19,094 of performance-based options for which the performance period had not begun. These options were classified as liability awards and had a weighted average fair values of $2.40 at December 31, 2010. | ||||||||||||||
-2 | On December 31, 2013, options outstanding had exercise prices ranging from $0.71 to $5.93 and options exercisable had exercise prices ranging from $0.71 to $5.93. | ||||||||||||||
Assumptions Used to Estimate Fair Value of Stock Options Granted | ' | ||||||||||||||
We used the Black-Scholes option pricing model to estimate the fair value of stock options granted in 2013, 2012, and 2011, with the following assumptions: | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Expected weighted-average life of options granted | 4.5 years | 3.0 - 5.0 years | 3.0 - 5.0 years | ||||||||||||
Range of volatility rates based on historical industry volatility | 100.52% | 94.39% - 102.22% | 90.65% | ||||||||||||
Range of risk-free interest rates | 0.81% | .57% - .83% | 1.18% - 2.16% | ||||||||||||
Expected dividend yield | — | — | — |
BUCKSPORT_ENERGY_ASSET_INVESTM1
BUCKSPORT ENERGY ASSET INVESTMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Text Block [Abstract] | ' | |||||||
Bucksport Energy Asset Investment | ' | |||||||
Balances included in the balance sheet at December 31, 2013 and 2012, related to this investment are as follows: | ||||||||
December 31, | ||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Other receivables | $ | 281 | $ | 413 | ||||
Other assets(1) | 214 | 220 | ||||||
Property, plant, and equipment | $ | 10,692 | $ | 10,697 | ||||
Accumulated depreciation | (4,668 | ) | (3,971 | ) | ||||
Net property, plant, and equipment | $ | 6,024 | $ | 6,726 | ||||
Current liabilities | $ | (83 | ) | $ | (159 | ) | ||
(1) Represents primarily restricted cash which may be used only to fund the ongoing energy operations of this investment. |
DERIVATIVE_INSTRUMENTS_AND_HED1
DERIVATIVE INSTRUMENTS AND HEDGES (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Information About Volume and Fair Value Amounts of Derivative Instruments | ' | |||||||||||||||||||||||
The following table presents information about the volume and fair value amounts of our derivative instruments: | ||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||
(Dollars in thousands) | MMBTUs | Fair Value | MMBTUs | Fair Value | ||||||||||||||||||||
Assets/(Liabilities) | Assets/(Liabilities) | |||||||||||||||||||||||
Derivative contracts not currently designated as hedging instruments | ||||||||||||||||||||||||
Fixed price energy swaps | ||||||||||||||||||||||||
Notional amount | 6,652,070 | 6,194,726 | ||||||||||||||||||||||
Prepaid expenses and other assets | $ | 15,505 | $ | 20 | ||||||||||||||||||||
Intangibles and other assets, net | — | 29 | ||||||||||||||||||||||
Accrued liabilities | (4,959 | ) | (3,909 | ) | ||||||||||||||||||||
Other liabilities | — | (225 | ) | |||||||||||||||||||||
Schedule of Information About Effect of Derivative Instruments on Accumulated Other Comprehensive Income and Consolidated Statements of Operations | ' | |||||||||||||||||||||||
The following tables present information about the effect of our derivative instruments on Accumulated other comprehensive income and the consolidated statements of operations: | ||||||||||||||||||||||||
Loss Recognized | Loss Reclassified | |||||||||||||||||||||||
in Accumulated OCI | from Accumulated OCI | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Derivative contracts designated as hedging instruments | ||||||||||||||||||||||||
Fixed price energy swaps | $ | — | $ | (1,365 | ) | $ | (5,188 | ) | $ | — | $ | (283 | ) | $ | (2,838 | ) | ||||||||
Derivative contracts not currently designated as hedging instruments | ||||||||||||||||||||||||
Fixed price energy swaps | $ | (335 | ) | $ | (5,573 | ) | $ | — | ||||||||||||||||
Loss reclassified from Accumulated OCI to earnings is included in Cost of products sold. | ||||||||||||||||||||||||
Gain (Loss) Recognized on Derivatives | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Derivative contracts designated as hedging instruments | ||||||||||||||||||||||||
Fixed price energy swaps | $ | — | $ | (50 | ) | $ | (1,189 | ) | ||||||||||||||||
Derivative contracts not currently designated as hedging instruments | ||||||||||||||||||||||||
Fixed price energy swaps | $ | 16,117 | $ | (2,973 | ) | $ | (8,643 | ) | ||||||||||||||||
Gain (loss) recognized on derivatives is included in Cost of products sold. | ||||||||||||||||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | |||||||||||||||
The following table summarizes the balances of assets and liabilities measured at fair value on a recurring basis: | ||||||||||||||||
(Dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
December 31, 2013 | ||||||||||||||||
Assets: | ||||||||||||||||
Deferred compensation assets | $ | 3,495 | $ | 3,495 | $ | — | $ | — | ||||||||
Commodity swaps | 15,505 | — | 15,505 | — | ||||||||||||
Liabilities: | ||||||||||||||||
Commodity swaps | $ | 4,959 | $ | — | $ | 4,959 | $ | — | ||||||||
December 31, 2012 | ||||||||||||||||
Assets: | ||||||||||||||||
Deferred compensation assets | $ | 3,396 | $ | 3,396 | $ | — | $ | — | ||||||||
Commodity swaps | 49 | — | 49 | — | ||||||||||||
Liabilities: | ||||||||||||||||
Commodity swaps | $ | 4,134 | $ | — | $ | 4,134 | $ | — | ||||||||
Fair values are based on observable market data. | ||||||||||||||||
RESTRUCTURING_CHARGES_Tables
RESTRUCTURING CHARGES (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Schedule of Cumulative Charges Incurred Related to Shutdown | ' | |||||||||||||||
The following table details the charges incurred related primarily to the mill closure in 2012 and paper machine shutdowns in 2011 as included in Restructuring charges on our accompanying consolidated statements of operations: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | Cumulative | ||||||||||||
Incurred | ||||||||||||||||
Property and equipment | $ | — | $ | 66,521 | $ | 7,068 | $ | 73,589 | ||||||||
Severance and benefit costs | 688 | 19,373 | 15,004 | 35,065 | ||||||||||||
Write-off of spare parts and inventory | — | 6,934 | 2,278 | 9,212 | ||||||||||||
Trademark impairment | — | 3,693 | — | 3,693 | ||||||||||||
Write-off of purchase obligations and commitments | (594 | ) | 2,420 | — | 1,826 | |||||||||||
Other miscellaneous costs | 1,284 | 3,463 | 114 | 4,861 | ||||||||||||
Total restructuring charges | $ | 1,378 | $ | 102,404 | $ | 24,464 | $ | 128,246 | ||||||||
Schedule of Changes in Shutdown Liability | ' | |||||||||||||||
The following details the changes in our associated restructuring reserve liabilities during the years ended December 31, 2013 and 2012 which are included in Accrued liabilities on our consolidated balance sheets: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||||||
Beginning balance of reserve | $ | 5,098 | $ | 10,763 | ||||||||||||
Severance and benefit costs | 196 | 15,500 | ||||||||||||||
Severance and benefit payments | (3,678 | ) | (22,230 | ) | ||||||||||||
Purchase obligations | — | 2,488 | ||||||||||||||
Payments on purchase obligations | (561 | ) | (1,355 | ) | ||||||||||||
Severance and benefit reserve adjustments | (461 | ) | — | |||||||||||||
Purchase obligation reserve adjustments | (594 | ) | (68 | ) | ||||||||||||
Ending balance of reserve | $ | — | $ | 5,098 | ||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Summary of the Components of the (Benefit) Provision for Income Taxes | ' | |||||||||||
The following is a summary of the components of the (benefit) provision for income taxes for Verso Paper: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||
Current tax provision (benefit): | ||||||||||||
U.S. federal | $ | — | $ | — | $ | — | ||||||
U.S. state and local | 38 | (96 | ) | 281 | ||||||||
38 | (96 | ) | 281 | |||||||||
Deferred tax (benefit) provision: | ||||||||||||
U.S. federal | (120,029 | ) | (58,563 | ) | (40,038 | ) | ||||||
U.S. state and local | (12,621 | ) | (6,486 | ) | (7,047 | ) | ||||||
(132,650 | ) | (65,049 | ) | (47,085 | ) | |||||||
Valuation allowance | 132,050 | 63,721 | 47,001 | |||||||||
Income tax (benefit) provision | $ | (562 | ) | $ | (1,424 | ) | $ | 197 | ||||
Reconciliation of Income Tax Expense using the Statutory Federal Income Tax Rate Compared with Actual Income Tax Expense | ' | |||||||||||
A reconciliation of income tax expense using the statutory federal income tax rate compared with actual income tax expense follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||
Tax at Statutory U.S. Rate of 34% | $ | (38,001 | ) | $ | (59,586 | ) | $ | (46,456 | ) | |||
Increase resulting from: | ||||||||||||
Acquisition transaction costs | 1,756 | — | — | |||||||||
Meals and entertainment | 173 | 197 | 169 | |||||||||
Nondeductible lobbying expenses | 80 | 46 | 38 | |||||||||
Disallowed compensation | — | 680 | — | |||||||||
Goodwill impairment | — | — | 6,356 | |||||||||
Equity award expense | — | — | 55 | |||||||||
Other disallowed expenses | 4 | 36 | 1 | |||||||||
Net permanent differences | 2,013 | 959 | 6,619 | |||||||||
Valuation allowance | 132,050 | 63,721 | 47,001 | |||||||||
Benefit from change in prior tax position | (93,039 | ) | — | — | ||||||||
State income taxes (benefit) | (3,740 | ) | (6,550 | ) | (6,861 | ) | ||||||
Return to provision | 155 | 32 | (106 | ) | ||||||||
Total income tax provision | $ | (562 | ) | $ | (1,424 | ) | $ | 197 | ||||
Summary of the Significant Components of Deferred Tax Position | ' | |||||||||||
The following is a summary of the significant components of our deferred tax position: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss and credit carryforwards | $ | 417,536 | $ | 272,575 | ||||||||
Payment-in-kind interest | 10,211 | 11,082 | ||||||||||
Pension | 9,606 | 11,403 | ||||||||||
Compensation reserves | 8,348 | 6,755 | ||||||||||
Inventory reserves | 7,546 | 7,103 | ||||||||||
Inventory capitalization | 2,885 | 2,492 | ||||||||||
Unrealized hedge losses | — | 1,559 | ||||||||||
Bad debt reserves | 841 | 900 | ||||||||||
Other | 2,046 | 1,665 | ||||||||||
Gross deferred tax assets | 459,019 | 315,534 | ||||||||||
Less: valuation allowance | (323,335 | ) | (195,695 | ) | ||||||||
Deferred tax assets, net of allowance | 135,684 | 119,839 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Property, plant, and equipment | $ | (100,507 | ) | $ | (84,241 | ) | ||||||
Cancellation of debt income deferral | (21,878 | ) | (26,127 | ) | ||||||||
Intangible assets | (8,241 | ) | (9,148 | ) | ||||||||
Deferred repair charges | (6,188 | ) | (6,657 | ) | ||||||||
Unrealized hedge income | (4,046 | ) | — | |||||||||
Prepaid expenses | (998 | ) | (440 | ) | ||||||||
Total deferred tax liabilities | (141,858 | ) | (126,613 | ) | ||||||||
Net deferred tax liabilities | $ | (6,174 | ) | $ | (6,774 | ) |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Text Block [Abstract] | ' | |||
Schedule of Future Minimum Rental Payments Due Under Non-Cancelable Operating Leases | ' | |||
The following table, as of December 31, 2013, represents the future minimum rental payments due under non-cancelable operating leases that have initial or remaining lease terms in excess of one year: | ||||
(Dollars in thousands) | ||||
2014 | $ | 5,259 | ||
2015 | 2,674 | |||
2016 | 973 | |||
2017 | 414 | |||
2018 | 162 | |||
Thereafter | 226 | |||
Total | $ | 9,708 | ||
Schedule of Unconditional Purchase Obligations | ' | |||
The following table, as of December 31, 2013, summarizes our unconditional purchase obligations. | ||||
(Dollars in thousands) | ||||
2014 | $ | 85,475 | ||
2015 | 44,669 | |||
2016 | 38,613 | |||
2017 | 38,935 | |||
2018 | 37,643 | |||
Thereafter | 129,685 | |||
Total | $ | 375,020 | ||
NEW_MARKET_TAX_CREDIT_ENTITIES1
NEW MARKET TAX CREDIT ENTITIES (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Schedule of Impact of Consolidated VIE | ' | |||||||||||||||
The following table summarizes the impact of the VIE consolidated by Verso Holdings as of December 31, 2013 and 2012: | ||||||||||||||||
VERSO PAPER | VERSO HOLDINGS | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Current assets | $ | 15 | $ | 24 | $ | 15 | $ | 24 | ||||||||
Non-current assets | 85 | 85 | 23,390 | 23,390 | ||||||||||||
Total assets | $ | 100 | $ | 109 | $ | 23,405 | $ | 23,414 | ||||||||
Current liabilities | 15 | 23 | 141 | 149 | ||||||||||||
Long-term debt | — | — | 23,305 | 23,305 | ||||||||||||
Other non-current liabilities | 7,923 | 7,923 | 7,923 | 7,923 | ||||||||||||
Total liabilities | $ | 7,938 | $ | 7,946 | $ | 31,369 | $ | 31,377 | ||||||||
Amounts presented in the condensed consolidated balance sheets and the table above are adjusted for intercompany eliminations. |
INFORMATION_BY_INDUSTRY_SEGMEN1
INFORMATION BY INDUSTRY SEGMENT (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Schedule of Industry Segment Data | ' | |||||||||||||||||||||||
The following table summarizes the industry segments for the years ended December 31, 2013, 2012, and 2011: | ||||||||||||||||||||||||
VERSO PAPER | VERSO HOLDINGS | |||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Net Sales: | ||||||||||||||||||||||||
Coated papers | $ | 1,062,555 | $ | 1,177,050 | $ | 1,418,817 | $ | 1,062,555 | $ | 1,177,050 | $ | 1,418,817 | ||||||||||||
Hardwood market pulp | 156,099 | 140,816 | 150,111 | 156,099 | 140,816 | 150,111 | ||||||||||||||||||
Other | 170,245 | 156,746 | 153,561 | 170,245 | 156,746 | 153,561 | ||||||||||||||||||
Total | $ | 1,388,899 | $ | 1,474,612 | $ | 1,722,489 | $ | 1,388,899 | $ | 1,474,612 | $ | 1,722,489 | ||||||||||||
Operating Income (Loss): | ||||||||||||||||||||||||
Coated papers (1) | $ | 14,546 | (26,166 | ) | (4,726 | ) | $ | 14,546 | (26,115 | ) | 3,470 | |||||||||||||
Hardwood market pulp | 21,540 | 9,215 | 33,357 | 21,540 | 9,215 | 33,357 | ||||||||||||||||||
Other | (2,186 | ) | (15,470 | ) | (12,945 | ) | (2,186 | ) | (15,470 | ) | (12,945 | ) | ||||||||||||
Total | $ | 33,900 | $ | (32,421 | ) | $ | 15,686 | $ | 33,900 | $ | (32,370 | ) | $ | 23,882 | ||||||||||
Depreciation, Amortization, and Depletion: | ||||||||||||||||||||||||
Coated papers | $ | 77,976 | $ | 90,740 | $ | 98,370 | $ | 77,976 | $ | 90,740 | $ | 98,370 | ||||||||||||
Hardwood market pulp | 18,125 | 18,000 | 17,249 | 18,125 | 18,000 | 17,249 | ||||||||||||||||||
Other | 8,629 | 9,438 | 9,676 | 8,629 | 9,438 | 9,676 | ||||||||||||||||||
Total | $ | 104,730 | $ | 118,178 | $ | 125,295 | $ | 104,730 | $ | 118,178 | $ | 125,295 | ||||||||||||
Capital Spending: | ||||||||||||||||||||||||
Coated papers | $ | 33,595 | $ | 57,807 | $ | 65,227 | $ | 33,595 | $ | 57,807 | $ | 65,227 | ||||||||||||
Hardwood market pulp (2) | 5,752 | (325 | ) | 23,695 | 5,752 | (325 | ) | 23,695 | ||||||||||||||||
Other | 1,313 | 2,427 | 1,350 | 1,313 | 2,427 | 1,350 | ||||||||||||||||||
Total | $ | 40,660 | $ | 59,909 | $ | 90,272 | $ | 40,660 | $ | 59,909 | $ | 90,272 | ||||||||||||
-1 | Included here is the effect of $102.4 million in Restructuring charges, offset by $60.6 million in Other operating income, recognized in 2012, which is entirely attributable to the coated papers segment. | |||||||||||||||||||||||
-2 | Included here is the effect, attributable to the pulp segment, of a $14.7 million cash inflow received in 2012 from governmental grants associated with a renewable energy project at our mill in Quinnesec, Michigan, due to spending in 2011. |
CONDENSED_CONSOLIDATING_FINANC1
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | ' | |||||||||||||||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 11,230 | $ | — | $ | 10 | $ | — | $ | 11,240 | ||||||||||||||
Accounts receivable, net | — | — | 104,624 | — | — | — | 104,624 | |||||||||||||||||||||
Inventories | — | — | 137,687 | — | — | — | 137,687 | |||||||||||||||||||||
Assets held for sale | — | — | 50 | — | — | — | 50 | |||||||||||||||||||||
Prepaid expenses and other assets | — | — | 20,616 | — | 5 | — | 20,621 | |||||||||||||||||||||
Current assets | — | — | 274,207 | — | 15 | — | 274,222 | |||||||||||||||||||||
Property, plant, and equipment, net | — | — | 724,063 | 19,171 | — | (288 | ) | 742,946 | ||||||||||||||||||||
Intercompany/affiliate receivable | 1,335,323 | — | 1,393 | — | 31,153 | (1,367,869 | ) | — | ||||||||||||||||||||
Investment in subsidiaries | (439,125 | ) | — | (12,124 | ) | — | — | 451,249 | — | |||||||||||||||||||
Intangibles and other assets, net(1) | — | — | 103,424 | 1,251 | 85 | — | 104,760 | |||||||||||||||||||||
Total assets | $ | 896,198 | $ | — | $ | 1,090,963 | $ | 20,422 | $ | 31,253 | $ | (916,908 | ) | $ | 1,121,928 | |||||||||||||
LIABILITIES AND MEMBER'S EQUITY | ||||||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 88,397 | $ | 7 | $ | 15 | $ | (7 | ) | $ | 88,412 | |||||||||||||
Accrued liabilities | 58,847 | — | 63,462 | — | 126 | — | 122,435 | |||||||||||||||||||||
Current maturities of long-term debt | 13,310 | — | — | — | — | — | 13,310 | |||||||||||||||||||||
Current liabilities | 72,157 | — | 151,859 | 7 | 141 | (7 | ) | 224,157 | ||||||||||||||||||||
Intercompany/affiliate payable | — | — | 1,335,323 | 32,539 | — | (1,367,862 | ) | — | ||||||||||||||||||||
Long-term debt(2) | 1,235,167 | — | — | — | 23,305 | — | 1,258,472 | |||||||||||||||||||||
Other liabilities | — | — | 42,502 | — | 8,087 | (164 | ) | 50,425 | ||||||||||||||||||||
Member's (deficit) equity | (411,126 | ) | — | (438,721 | ) | (12,124 | ) | (280 | ) | 451,125 | (411,126 | ) | ||||||||||||||||
Total liabilities and equity | $ | 896,198 | $ | — | $ | 1,090,963 | $ | 20,422 | $ | 31,253 | $ | (916,908 | ) | $ | 1,121,928 | |||||||||||||
(1) Intangibles and other assets, net of Guarantor Subsidiaries includes $23.3 million of a long-term note receivable from Verso Finance. | ||||||||||||||||||||||||||||
(2) Long-term debt of Non-Guarantor Affiliate is payable to Verso Finance. | ||||||||||||||||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 61,453 | $ | — | $ | 17 | $ | — | $ | 61,470 | ||||||||||||||
Accounts receivable, net | — | — | 101,014 | — | — | — | 101,014 | |||||||||||||||||||||
Inventories | — | — | 131,467 | — | — | — | 131,467 | |||||||||||||||||||||
Assets held for sale | — | — | 24,867 | — | — | — | 24,867 | |||||||||||||||||||||
Prepaid expenses and other assets | — | — | 3,989 | — | 7 | — | 3,996 | |||||||||||||||||||||
Current assets | — | — | 322,790 | — | 24 | — | 322,814 | |||||||||||||||||||||
Property, plant, and equipment, net | — | — | 773,074 | 20,246 | — | (289 | ) | 793,031 | ||||||||||||||||||||
Intercompany/affiliate receivable | 1,251,788 | — | 1,401 | — | 31,153 | (1,284,342 | ) | — | ||||||||||||||||||||
Investment in subsidiaries | (253,714 | ) | — | (11,183 | ) | — | — | 264,897 | — | |||||||||||||||||||
Intangibles and other assets, net(1) | — | — | 115,222 | 1,125 | 85 | — | 116,432 | |||||||||||||||||||||
Total assets | $ | 998,074 | $ | — | $ | 1,201,304 | $ | 21,371 | $ | 31,262 | $ | (1,019,734 | ) | $ | 1,232,277 | |||||||||||||
LIABILITIES AND MEMBER'S EQUITY | ||||||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 92,056 | $ | 7 | $ | 23 | $ | (7 | ) | $ | 92,079 | |||||||||||||
Accrued liabilities | 54,926 | — | 64,069 | — | 126 | — | 119,121 | |||||||||||||||||||||
Liabilities related to assets held for sale | — | — | 176 | — | — | — | 176 | |||||||||||||||||||||
Current liabilities | 54,926 | — | 156,301 | 7 | 149 | (7 | ) | 211,376 | ||||||||||||||||||||
Intercompany/affiliate payable | — | — | 1,251,788 | 32,547 | — | (1,284,335 | ) | — | ||||||||||||||||||||
Long-term debt(2) | 1,163,747 | — | — | — | 23,305 | — | 1,187,052 | |||||||||||||||||||||
Other liabilities | — | — | 46,525 | — | 8,032 | (109 | ) | 54,448 | ||||||||||||||||||||
Member's (deficit) equity | (220,599 | ) | — | (253,310 | ) | (11,183 | ) | (224 | ) | 264,717 | (220,599 | ) | ||||||||||||||||
Total liabilities and equity | $ | 998,074 | $ | — | $ | 1,201,304 | $ | 21,371 | $ | 31,262 | $ | (1,019,734 | ) | $ | 1,232,277 | |||||||||||||
(1) Intangibles and other assets, net of Guarantor Subsidiaries includes $23.3 million of a long-term note receivable from Verso Finance. | ||||||||||||||||||||||||||||
(2) Long-term debt of Non-Guarantor Affiliate is payable to Verso Finance. | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | ' | |||||||||||||||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | ||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 1,388,899 | $ | — | $ | — | $ | — | $ | 1,388,899 | ||||||||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | — | — | 1,179,085 | — | — | — | 1,179,085 | |||||||||||||||||||||
Depreciation, amortization, and depletion | — | — | 103,655 | 1,075 | 55 | (55 | ) | 104,730 | ||||||||||||||||||||
Selling, general, and administrative expenses | — | — | 75,452 | (1,707 | ) | 32 | — | 73,777 | ||||||||||||||||||||
Restructuring charges | — | — | 1,378 | — | — | — | 1,378 | |||||||||||||||||||||
Other operating income | — | — | (3,971 | ) | — | — | — | (3,971 | ) | |||||||||||||||||||
Interest income | (138,298 | ) | — | (1,539 | ) | — | (1,546 | ) | 139,844 | (1,539 | ) | |||||||||||||||||
Interest expense | 138,298 | — | 137,083 | 1,574 | 1,515 | (139,844 | ) | 138,626 | ||||||||||||||||||||
Other loss, net | 2,800 | — | 5,165 | — | — | — | 7,965 | |||||||||||||||||||||
Equity in net loss of subsidiaries | (108,352 | ) | — | — | — | — | 108,352 | — | ||||||||||||||||||||
Net loss | $ | (111,152 | ) | $ | — | $ | (107,409 | ) | $ | (942 | ) | $ | (56 | ) | $ | 108,407 | $ | (111,152 | ) | |||||||||
Other comprehensive income | 13,838 | — | 13,838 | — | — | (13,838 | ) | 13,838 | ||||||||||||||||||||
Comprehensive loss | $ | (97,314 | ) | $ | — | $ | (93,571 | ) | $ | (942 | ) | $ | (56 | ) | $ | 94,569 | $ | (97,314 | ) | |||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | ||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 1,474,612 | $ | — | $ | — | $ | — | $ | 1,474,612 | ||||||||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | — | — | 1,272,630 | — | — | — | 1,272,630 | |||||||||||||||||||||
Depreciation, amortization, and depletion | — | — | 117,014 | 1,164 | 55 | (55 | ) | 118,178 | ||||||||||||||||||||
Selling, general, and administrative expenses | — | — | 76,039 | (1,707 | ) | 32 | — | 74,364 | ||||||||||||||||||||
Restructuring charges | — | — | 102,404 | — | — | — | 102,404 | |||||||||||||||||||||
Other operating income | — | — | (60,594 | ) | — | — | — | (60,594 | ) | |||||||||||||||||||
Interest income | (129,801 | ) | — | (1,523 | ) | — | (1,546 | ) | 131,347 | (1,523 | ) | |||||||||||||||||
Interest expense | 129,801 | — | 126,399 | 1,575 | 1,515 | (131,347 | ) | 127,943 | ||||||||||||||||||||
Other loss, net | 8,244 | — | (864 | ) | — | — | — | 7,380 | ||||||||||||||||||||
Equity in net loss of subsidiaries | (157,926 | ) | — | — | — | — | 157,926 | — | ||||||||||||||||||||
Net loss | $ | (166,170 | ) | $ | — | $ | (156,893 | ) | $ | (1,032 | ) | $ | (56 | ) | $ | 157,981 | $ | (166,170 | ) | |||||||||
Other comprehensive income | 3,385 | — | 3,385 | — | — | (3,385 | ) | 3,385 | ||||||||||||||||||||
Comprehensive loss | $ | (162,785 | ) | $ | — | $ | (153,508 | ) | $ | (1,032 | ) | $ | (56 | ) | $ | 154,596 | $ | (162,785 | ) | |||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | ||||||||||||||||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 1,722,489 | $ | — | $ | — | $ | — | $ | 1,722,489 | ||||||||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | — | — | 1,460,290 | — | — | — | 1,460,290 | |||||||||||||||||||||
Depreciation, amortization, and depletion | — | — | 125,121 | 174 | 55 | (55 | ) | 125,295 | ||||||||||||||||||||
Selling, general, and administrative expenses | — | — | 78,038 | (156 | ) | 125 | — | 78,007 | ||||||||||||||||||||
Goodwill impairment | — | — | 10,551 | — | — | — | 10,551 | |||||||||||||||||||||
Restructuring charges | — | — | 24,464 | — | — | — | 24,464 | |||||||||||||||||||||
Interest income | (124,366 | ) | — | (1,560 | ) | (54 | ) | (1,546 | ) | 125,912 | (1,614 | ) | ||||||||||||||||
Interest expense | 124,366 | — | 121,883 | 361 | 1,515 | (125,912 | ) | 122,213 | ||||||||||||||||||||
Other loss (income), net | 26,091 | — | (279 | ) | — | — | — | 25,812 | ||||||||||||||||||||
Equity in net loss of subsidiaries | $ | (96,438 | ) | $ | — | $ | — | $ | — | $ | — | $ | 96,438 | $ | — | |||||||||||||
Net loss | (122,529 | ) | — | (96,019 | ) | (325 | ) | (149 | ) | 96,493 | (122,529 | ) | ||||||||||||||||
Other comprehensive loss | (12,404 | ) | $ | — | (12,404 | ) | $ | — | $ | — | 12,404 | (12,404 | ) | |||||||||||||||
Comprehensive loss | $ | (134,933 | ) | $ | — | $ | (108,423 | ) | $ | (325 | ) | $ | (149 | ) | $ | 108,897 | $ | (134,933 | ) | |||||||||
Condensed Consolidating Statements of Cash Flows | ' | |||||||||||||||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
Net cash used in operating activities | $ | — | $ | — | $ | (27,609 | ) | $ | 154 | $ | (7 | ) | $ | — | $ | (27,462 | ) | |||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||
Proceeds from sale of assets | — | — | 28,397 | — | — | — | 28,397 | |||||||||||||||||||||
Transfers (to) from restricted cash | — | — | (1,338 | ) | (154 | ) | — | — | (1,492 | ) | ||||||||||||||||||
Return of investment in subsidiaries | 140 | — | (140 | ) | — | — | — | — | ||||||||||||||||||||
Capital expenditures | — | — | (40,660 | ) | — | — | — | (40,660 | ) | |||||||||||||||||||
Net cash provided by (used in) investing activities | 140 | — | (13,741 | ) | (154 | ) | — | — | (13,755 | ) | ||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||
Borrowings on revolving credit facilities | 145,000 | — | — | — | — | — | 145,000 | |||||||||||||||||||||
Payments on revolving credit facilities | (145,000 | ) | — | — | — | — | — | (145,000 | ) | |||||||||||||||||||
Return of capital | (8,653 | ) | — | — | — | — | — | (8,653 | ) | |||||||||||||||||||
Debt issuance costs | (220 | ) | — | — | — | — | — | (220 | ) | |||||||||||||||||||
Cash distributions | (140 | ) | — | — | — | — | — | (140 | ) | |||||||||||||||||||
Repayment of advances to subsidiaries | 8,653 | — | (8,653 | ) | — | — | — | — | ||||||||||||||||||||
Advances from subsidiaries | 220 | — | (220 | ) | — | — | — | — | ||||||||||||||||||||
Net cash used in financing activities | (140 | ) | — | (8,873 | ) | — | — | — | (9,013 | ) | ||||||||||||||||||
Change in cash and cash equivalents | — | — | (50,223 | ) | — | (7 | ) | — | (50,230 | ) | ||||||||||||||||||
Cash and cash equivalents at beginning of period | — | — | 61,453 | — | 17 | — | 61,470 | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 11,230 | $ | — | $ | 10 | $ | — | $ | 11,240 | ||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | — | $ | — | $ | 9,449 | $ | 1,909 | $ | (56 | ) | $ | — | $ | 11,302 | |||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||
Proceeds from insurance settlement | — | — | 51,003 | — | — | — | 51,003 | |||||||||||||||||||||
Proceeds from sale of assets | — | — | 1,731 | — | — | — | 1,731 | |||||||||||||||||||||
Transfers (to) from restricted cash | — | — | 184 | (78 | ) | — | — | 106 | ||||||||||||||||||||
Return of investment in subsidiaries | (694 | ) | — | 694 | — | — | — | — | ||||||||||||||||||||
Capital expenditures | — | — | (68,585 | ) | 8,676 | — | — | (59,909 | ) | |||||||||||||||||||
Net cash (used in) provided by investing activities | (694 | ) | — | (14,973 | ) | 8,598 | — | — | (7,069 | ) | ||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||
Borrowings on revolving credit facilities | 112,500 | — | — | — | — | — | 112,500 | |||||||||||||||||||||
Payments on revolving credit facilities | (112,500 | ) | — | — | — | — | — | (112,500 | ) | |||||||||||||||||||
Proceeds from long-term debt | 341,191 | — | — | — | — | — | 341,191 | |||||||||||||||||||||
Repayments of long-term debt | (354,984 | ) | — | — | — | — | — | (354,984 | ) | |||||||||||||||||||
Debt issuance costs | (24,459 | ) | — | — | — | — | — | (24,459 | ) | |||||||||||||||||||
Contribution from parent | 776 | — | — | — | — | — | 776 | |||||||||||||||||||||
Cash distributions | (82 | ) | — | 10,507 | (10,507 | ) | — | — | (82 | ) | ||||||||||||||||||
Repayment of advances to subsidiaries | 354,984 | — | (354,984 | ) | — | — | — | — | ||||||||||||||||||||
Advances to subsidiaries | (316,732 | ) | — | 316,732 | — | — | — | — | ||||||||||||||||||||
Net cash provided by (used in) financing activities | 694 | — | (27,745 | ) | (10,507 | ) | — | — | (37,558 | ) | ||||||||||||||||||
Change in cash and cash equivalents | — | — | (33,269 | ) | — | (56 | ) | — | (33,325 | ) | ||||||||||||||||||
Cash and cash equivalents at beginning of period | — | — | 94,722 | — | 73 | — | 94,795 | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 61,453 | $ | — | $ | 17 | $ | — | $ | 61,470 | ||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non-Guarantor | Non- Guarantor | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Subsidiary | Affiliate | ||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | — | $ | — | $ | 18,815 | $ | (4,322 | ) | $ | 69 | $ | — | $ | 14,562 | |||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||
Proceeds from sale of fixed assets | — | — | 228 | — | — | — | 228 | |||||||||||||||||||||
Transfers (to) from restricted cash | — | — | (975 | ) | 24,814 | — | — | 23,839 | ||||||||||||||||||||
Capital expenditures | — | — | (69,866 | ) | (20,406 | ) | — | — | (90,272 | ) | ||||||||||||||||||
Return of investment in subsidiaries | 88 | — | (88 | ) | — | — | — | — | ||||||||||||||||||||
Net cash provided by (used in) investing activities | 88 | — | (70,701 | ) | 4,408 | — | — | (66,205 | ) | |||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||
Proceeds from long-term debt | 394,618 | — | — | — | — | — | 394,618 | |||||||||||||||||||||
Repayments of long-term debt | (389,998 | ) | — | — | — | — | — | (389,998 | ) | |||||||||||||||||||
Debt issuance costs | (10,715 | ) | — | 1 | (86 | ) | — | — | (10,800 | ) | ||||||||||||||||||
Cash distributions | (88 | ) | — | — | — | — | — | (88 | ) | |||||||||||||||||||
Repayment of advances to subsidiaries | 389,998 | — | (389,998 | ) | — | — | — | — | ||||||||||||||||||||
Advances to subsidiaries | (383,903 | ) | — | 383,903 | — | — | — | — | ||||||||||||||||||||
Net cash used in financing activities | (88 | ) | — | (6,094 | ) | (86 | ) | — | — | (6,268 | ) | |||||||||||||||||
Change in cash and cash equivalents | — | — | (57,980 | ) | — | 69 | — | (57,911 | ) | |||||||||||||||||||
Cash and cash equivalents at beginning of period | — | — | 152,702 | — | 4 | — | 152,706 | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 94,722 | $ | — | $ | 73 | $ | — | $ | 94,795 | ||||||||||||||
QUARTERLY_DATA_Tables
QUARTERLY DATA (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Quarterly Financial Data (Unaudited) | ' | |||||||||||||||||||||||||||||||
Verso Paper’s quarterly financial data (unaudited) is as follows: | ||||||||||||||||||||||||||||||||
VERSO PAPER CORP. | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
(Dollars in millions, except per share amounts) | Fourth | Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||||||||
Summary Statement of Operations Data: | ||||||||||||||||||||||||||||||||
Net sales | $ | 350.4 | $ | 374.9 | $ | 330.4 | $ | 333.2 | $ | 361 | $ | 373 | $ | 365.3 | $ | 375.3 | ||||||||||||||||
Gross margin(1) | 62.8 | 69.1 | 36.5 | 41.4 | 50.8 | 71.1 | 42.1 | 38 | ||||||||||||||||||||||||
Cost of products sold | 313.7 | 332.1 | 320.2 | 317.8 | 337.1 | 330 | 355 | 368.7 | ||||||||||||||||||||||||
Selling, general, and administrative expenses | 17.8 | 18 | 19.2 | 18.8 | 18.2 | 17.5 | 19.9 | 18.8 | ||||||||||||||||||||||||
Restructuring charges (2) | 0.1 | 0.1 | 0.2 | 1 | 5.4 | 97 | (0.1 | ) | 0.1 | |||||||||||||||||||||||
Other operating income (3) | — | — | (0.7 | ) | (3.3 | ) | (60.6 | ) | — | — | — | |||||||||||||||||||||
Interest expense | 34.3 | 34.4 | 34.4 | 34.7 | 36.8 | 33.2 | 33.3 | 32.1 | ||||||||||||||||||||||||
Other loss (income), net | 5.1 | 0.1 | 0.1 | 2.6 | (0.1 | ) | — | (22.1 | ) | 29.6 | ||||||||||||||||||||||
Income tax (benefit) expense | (0.6 | ) | — | — | — | (1.3 | ) | — | — | (0.1 | ) | |||||||||||||||||||||
Net (loss) income | (20.0 | ) | (9.8 | ) | (43.0 | ) | (38.4 | ) | 25.5 | (104.7 | ) | (20.7 | ) | (73.9 | ) | |||||||||||||||||
Share Data(4): | ||||||||||||||||||||||||||||||||
(Loss) earnings per share: | ||||||||||||||||||||||||||||||||
Basic | $ | (0.38 | ) | $ | (0.18 | ) | $ | (0.81 | ) | $ | (0.72 | ) | $ | 0.48 | $ | (1.98 | ) | $ | (0.39 | ) | $ | (1.40 | ) | |||||||||
Diluted | (0.38 | ) | (0.18 | ) | (0.81 | ) | (0.72 | ) | 0.48 | (1.98 | ) | (0.39 | ) | (1.40 | ) | |||||||||||||||||
Weighted average shares of common stock outstanding (thousands): | ||||||||||||||||||||||||||||||||
Basic | 53,172 | 53,172 | 53,172 | 52,976 | 52,896 | 52,907 | 52,908 | 52,686 | ||||||||||||||||||||||||
Diluted | 53,172 | 53,172 | 53,172 | 52,976 | 52,913 | 52,907 | 52,908 | 52,686 | ||||||||||||||||||||||||
Closing price per share: | ||||||||||||||||||||||||||||||||
High | $ | 0.85 | $ | 1.13 | $ | 1.29 | $ | 1.65 | $ | 1.67 | $ | 2 | $ | 1.8 | $ | 2.5 | ||||||||||||||||
Low | 0.54 | 0.62 | 1.03 | 0.98 | 1.01 | 1.17 | 1.08 | 0.97 | ||||||||||||||||||||||||
Period-end | 0.63 | 0.76 | 1.15 | 1.32 | 1.07 | 1.6 | 1.18 | 1.88 | ||||||||||||||||||||||||
(1) Gross margin represents net sales less cost of products sold, excluding depreciation, amortization, and depletion. | ||||||||||||||||||||||||||||||||
(2) Represents costs primarily associated with the closure of the former Sartell mill in 2012. | ||||||||||||||||||||||||||||||||
(3) Represents gain on sale of the former Sartell mill and Fiber Farm LLC in 2013 and gain on insurance settlement resulting from the fire at the former Sartell mill in 2012. | ||||||||||||||||||||||||||||||||
(4) No dividends were declared or paid in any of the periods presented. |
Recovered_Sheet1
Summary of Business and Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Share data in Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 14-May-08 |
Segment | ||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' | ' | ' | ' |
Pension liability adjustment | $11,221,000 | ($4,185,000) | ($12,079,000) | ' |
Initial public offering | ' | ' | ' | 14 |
Market segments | 3 | ' | ' | ' |
Interest cost, capitalized | 1,300,000 | 3,500,000 | ' | ' |
Impairment of intangible assets | 1,600,000 | ' | ' | ' |
Goodwill impairment charge | 0 | 0 | 18,695,000 | ' |
Trade accounts receivable - unaffiliated customers | 100,700,000 | 97,000,000 | ' | ' |
Allowance for doubtful accounts | 700,000 | 1,000,000 | ' | ' |
Bad debt expenses | 263,000 | 98,000 | 156,000 | ' |
Restricted cash | 4,946,000 | 3,454,000 | ' | ' |
Maximum | ' | ' | ' | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' | ' | ' | ' |
Planned maintenance costs to be expensed as incurred | 500,000 | ' | ' | ' |
VERSO PAPER HOLDINGS LLC | ' | ' | ' | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' | ' | ' | ' |
Pension liability adjustment | 11,221,000 | -4,185,000 | -12,079,000 | ' |
Goodwill impairment charge | 0 | 0 | 10,551,000 | ' |
Restricted cash | 4,946,000 | 3,454,000 | ' | ' |
Trademarks | ' | ' | ' | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' | ' | ' | ' |
Trademarks impairment charge | ' | 3,700,000 | ' | ' |
Customer Related Intangibles [Member] | ' | ' | ' | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' | ' | ' | ' |
Finite-lived intangible assets, estimated useful lives | '25 years | ' | ' | ' |
Patents | ' | ' | ' | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' | ' | ' | ' |
Finite-lived intangible assets, estimated useful lives | '10 years | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' | ' | ' | ' |
Fixed asset impairment charge | ' | 66,500,000 | ' | ' |
Intangibles and other assets | Asset retirement obligation | ' | ' | ' | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' | ' | ' | ' |
Restricted cash | $800,000 | $800,000 | ' | ' |
Recovered_Sheet2
Summary of Business and Significant Accounting Policies - Schedule of Estimated Useful Lives of Property, Plant, and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Leasehold Improvements | ' |
Significant Accounting Policies [Line Items] | ' |
Estimated useful life | 'Over the terms of the lease or the useful life of the improvements |
Minimum | Building | ' |
Significant Accounting Policies [Line Items] | ' |
Estimated useful life | '20 years |
Minimum | Machinery and Equipment | ' |
Significant Accounting Policies [Line Items] | ' |
Estimated useful life | '10 years |
Minimum | Furniture and Fixtures | ' |
Significant Accounting Policies [Line Items] | ' |
Estimated useful life | '3 years |
Minimum | Computer Equipment | ' |
Significant Accounting Policies [Line Items] | ' |
Estimated useful life | '3 years |
Maximum | Building | ' |
Significant Accounting Policies [Line Items] | ' |
Estimated useful life | '40 years |
Maximum | Machinery and Equipment | ' |
Significant Accounting Policies [Line Items] | ' |
Estimated useful life | '20 years |
Maximum | Furniture and Fixtures | ' |
Significant Accounting Policies [Line Items] | ' |
Estimated useful life | '10 years |
Maximum | Computer Equipment | ' |
Significant Accounting Policies [Line Items] | ' |
Estimated useful life | '6 years |
Recovered_Sheet3
Summary of Business and Significant Accounting Policies - Asset Retirement Obligations Included in Other Liabilities (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure Summary Of Business And Significant Accounting Policies Asset Retirement Obligations Included In Other Liabilities [Abstract] | ' | ' |
Asset retirement obligation - beginning balance | $11,854 | $11,233 |
Liabilities incurred | 1,546 | 0 |
Settlement of existing liabilities | -903 | -449 |
Accretion expense | 887 | 827 |
Adjustment to existing liabilities | -190 | 419 |
Liabilities related to assets held for sale | 0 | -176 |
Asset retirement obligation - ending balance | 13,194 | 11,854 |
Less: Current portion | -486 | 0 |
Non-current portion of asset retirement obligations, December 31 | $12,708 | $11,854 |
SUMMARY_OF_BUSINESS_AND_SIGNIF3
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Summary of Business and Significant Accounting Policies - Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Begining balance | ($25,273) | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss) to Cost of products sold | 2,617 | ' | ' |
Pension liability adjustment | 11,221 | ' | ' |
Other comprehensive income (loss) | 13,838 | 3,385 | -12,404 |
Ending balance | -11,435 | -25,273 | ' |
Losses on Derivative Financial Instruments | ' | ' | ' |
Schedule of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Begining balance | -335 | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss) to Cost of products sold | 335 | ' | ' |
Other comprehensive income (loss) | 335 | ' | ' |
Ending balance | 0 | ' | ' |
Defined Benefit Pension Items | ' | ' | ' |
Schedule of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Begining balance | -24,938 | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss) to Cost of products sold | 2,282 | ' | ' |
Pension liability adjustment | 11,221 | ' | ' |
Other comprehensive income (loss) | 13,503 | ' | ' |
Ending balance | ($11,435) | ' | ' |
Inventories_Detail
Inventories (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $25,843 | $25,747 |
Woodyard logs | 6,602 | 5,942 |
Work-in-process | 14,738 | 17,629 |
Finished goods | 60,919 | 55,909 |
Replacement parts and other supplies | 29,585 | 26,240 |
Inventories | $137,687 | $131,467 |
Recovered_Sheet4
Assets Held for Sale and Insurance Proceeds (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Restructuring charges | $0 | $77,376,000 | $0 |
Proceeds from insurance settlement in excess of costs and property damages incurred | ' | 60,600,000 | ' |
Proceeds from insurance settlement | $0 | $51,003,000 | $0 |
Assets_Held_for_Sale_Liabiliti
Assets Held for Sale, Liabilities Associated with Assets Held for Sale, and Insurance Proceeds (Schedule of Assets and Liabilities Held for Sale) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Long Lived Assets Held-for-sale [Line Items] | ' | ' | ||
Property, plant, and equipment, net | $0 | [1] | $12,124 | [1] |
Reforestation | 50 | [1] | 12,743 | [1] |
Assets held for sale | 50 | 24,867 | ||
Liabilities related to assets held for sale | 0 | 176 | ||
Asset Retirement Obligations | ' | ' | ||
Long Lived Assets Held-for-sale [Line Items] | ' | ' | ||
Liabilities related to assets held for sale | $0 | $176 | ||
[1] | Recorded at carrying value as the expected proceeds less costs to sell exceed carrying value |
Property_Plant_and_Equipment_D
Property, Plant, and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ' | ' |
Land and land improvements | $30,547 | $28,985 |
Building and leasehold improvements | 154,521 | 153,769 |
Machinery, equipment, and other | 1,301,368 | 1,278,427 |
Construction-in-progress | 37,100 | 11,017 |
Property, plant, and equipment, gross | 1,523,536 | 1,472,198 |
Accumulated depreciation | -780,590 | -679,167 |
Property, plant, and equipment, net | $742,946 | $793,031 |
Property_Plant_and_Equipment_A
Property, Plant and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Depreciation expense | $103.90 | $117.20 | $130.50 |
Capital expenditures that were unpaid and included in accounts payable and accrued liabilities | $11.50 | ' | ' |
Intangibles_and_Other_Assets_D
Intangibles and Other Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Amortizable intangible assets: | ' | ' | ||
Amortizable intangible assets, net of accumulated amortization | $5,416 | $6,231 | ||
Other assets: | ' | ' | ||
Financing costs, net of accumulated amortization | 28,761 | 33,909 | ||
Deferred major repair | 16,218 | 17,473 | ||
Replacement parts, net | 3,465 | 3,679 | ||
Restricted cash | 4,946 | 3,454 | ||
Other | 6,469 | 10,601 | ||
Total other assets | 59,859 | 69,116 | ||
Intangibles and other assets | 81,455 | 93,127 | ||
Trademarks | ' | ' | ||
Unamortizable intangible assets: | ' | ' | ||
Trademarks | 16,180 | 17,780 | ||
Customer Relationships | ' | ' | ||
Amortizable intangible assets: | ' | ' | ||
Amortizable intangible assets, net of accumulated amortization | 5,120 | 5,820 | ||
Patents | ' | ' | ||
Amortizable intangible assets: | ' | ' | ||
Amortizable intangible assets, net of accumulated amortization | 296 | 411 | ||
VERSO PAPER HOLDINGS LLC | ' | ' | ||
Amortizable intangible assets: | ' | ' | ||
Amortizable intangible assets, net of accumulated amortization | 5,416 | 6,231 | ||
Other assets: | ' | ' | ||
Financing costs, net of accumulated amortization | 28,761 | 33,909 | ||
Deferred major repair | 16,218 | 17,473 | ||
Replacement parts, net | 3,465 | 3,679 | ||
Loan to affiliate | 23,305 | 23,305 | ||
Restricted cash | 4,946 | 3,454 | ||
Other | 6,469 | 10,601 | ||
Total other assets | 83,164 | 92,421 | ||
Intangibles and other assets | 104,760 | [1] | 116,432 | [1] |
VERSO PAPER HOLDINGS LLC | Trademarks | ' | ' | ||
Unamortizable intangible assets: | ' | ' | ||
Trademarks | 16,180 | 17,780 | ||
VERSO PAPER HOLDINGS LLC | Customer Relationships | ' | ' | ||
Amortizable intangible assets: | ' | ' | ||
Amortizable intangible assets, net of accumulated amortization | 5,120 | 5,820 | ||
VERSO PAPER HOLDINGS LLC | Patents | ' | ' | ||
Amortizable intangible assets: | ' | ' | ||
Amortizable intangible assets, net of accumulated amortization | $296 | $411 | ||
[1] | Intangibles and other assets, net of Guarantor Subsidiaries includes $23.3 million of a long-term note receivable from Verso Finance. |
Intangibles_and_Other_Assets_P
Intangibles and Other Assets (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Intangibles and Other Assets by Major Class [Line Items] | ' | ' |
Financing costs, accumulated amortization | $13.60 | $8.20 |
Customer Relationships | ' | ' |
Intangibles and Other Assets by Major Class [Line Items] | ' | ' |
Amortizable intangible assets, accumulated amortization | 8.2 | 7.5 |
Patents | ' | ' |
Intangibles and Other Assets by Major Class [Line Items] | ' | ' |
Amortizable intangible assets, accumulated amortization | $0.90 | $0.70 |
Intangibles_and_Other_Assets_A
Intangibles and Other Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 27 Months Ended | 9 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||||||
Trademarks, Interim Impairment Analysis | Trademarks, Final Impairment Analysis | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | |||||||||||||||||||||
Intangibles and Other Assets by Major Class [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Impairment of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | $1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Amortization expense of intangibles | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | 900,000 | 1,100,000 | ' | ' | ' | ' | ' | ' | ||||||||
Restructuring charges | 100,000 | [1] | 100,000 | [1] | 200,000 | [1] | 1,000,000 | [1] | 5,400,000 | [1] | 97,000,000 | [1] | -100,000 | [1] | 100,000 | [1] | 1,378,000 | 102,404,000 | 24,464,000 | 128,246,000 | 3,400,000 | 300,000 | 1,378,000 | 102,404,000 | 24,464,000 |
Goodwill impairment loss | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $18,695,000 | ' | ' | ' | $0 | $0 | $10,551,000 | ||||||||
[1] | Represents costs primarily associated with the closure of the former Sartell mill in 2012 |
Intangibles_and_Other_Assets_E
Intangibles and Other Assets - Estimated Future Amortization Expense for Intangible Assets Over Next Five Years (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Estimated future amortization expense | ' |
2014 | $715 |
2015 | 615 |
2016 | 567 |
2017 | 400 |
2018 | $300 |
Accrued_Liabilities_Detail
Accrued Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Accrued Liabilities [Line Items] | ' | ' |
Accrued interest | $58,852 | $56,013 |
Payroll and employee benefit costs | 40,054 | 37,721 |
Accrued sales rebates | 11,573 | 11,138 |
Derivatives | 4,959 | 3,909 |
Accrued taxes - other than income | 1,456 | 1,584 |
Restructuring costs | 0 | 5,098 |
Freight and other | 5,441 | 4,717 |
Accrued liabilities | 122,335 | 120,180 |
VERSO PAPER HOLDINGS LLC | ' | ' |
Schedule of Accrued Liabilities [Line Items] | ' | ' |
Accrued interest | 58,977 | 55,060 |
Payroll and employee benefit costs | 40,054 | 37,721 |
Accrued sales rebates | 11,573 | 11,138 |
Derivatives | 4,959 | 3,909 |
Accrued taxes - other than income | 1,431 | 1,478 |
Restructuring costs | 0 | 5,098 |
Freight and other | 5,441 | 4,717 |
Accrued liabilities | $122,435 | $119,121 |
LongTerm_Debt_Summary_of_LongT
Long-Term Debt - Summary of Long-Term Debt (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
In Thousands, unless otherwise specified | Verso Paper Finance Holdings LLC | Verso Paper Finance Holdings LLC | Verso Paper Finance Holdings LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | 11.75% Senior Secured Notes | 11.75% Senior Secured Notes | 11.75% Secured Notes | 11.75% Secured Notes | 8.75% Second Priority Senior Secured Notes | 8.75% Second Priority Senior Secured Notes | Second Priority Senior Secured Floating Rate Notes | Second Priority Senior Secured Floating Rate Notes | 11.38% Senior Subordinated Notes | 11.38% Senior Subordinated Notes | Senior Unsecured Term Loan | Senior Unsecured Term Loan | Loan from Verso Paper Holdings LLC | Loan from Verso Paper Holdings LLC | Chase NMTC Verso Investment Fund, LLC | Chase NMTC Verso Investment Fund, LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | Revolving Credit Facilities | Revolving Credit Facilities | Intercompany Eliminations [Member] | Intercompany Eliminations [Member] | ||||||
VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | Verso Paper Finance Holdings LLC | Verso Paper Finance Holdings LLC | Verso Paper Finance Holdings LLC | Verso Paper Finance Holdings LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | Verso Paper Finance Holdings LLC | Verso Paper Finance Holdings LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | ||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Original Maturity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4-May-17 | ' | ' | ' | ||||
Original Maturity | ' | ' | ' | ' | ' | ' | ' | 15-Jan-19 | [1] | ' | 15-Jan-19 | ' | 1-Feb-19 | [2] | ' | 1-Aug-14 | ' | 1-Aug-16 | ' | 1-Feb-13 | ' | 29-Dec-40 | ' | 29-Dec-40 | ' | ' | ' | ' | ' | ' | ' | ||
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | ' | ||||
Interest rate | ' | ' | ' | ' | ' | ' | ' | 11.75% | [1] | ' | 11.75% | ' | 8.75% | [2] | ' | ' | ' | 11.38% | ' | ' | ' | 6.50% | 6.50% | 6.50% | ' | ' | ' | ' | ' | ' | ' | ||
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.99% | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Balance | $1,235,167 | $1,248,458 | ' | ' | ' | $1,271,782 | $1,187,052 | $426,076 | [1] | $341,493 | [1] | $271,573 | $271,573 | $395,018 | [2] | $394,871 | [2] | $13,310 | $13,310 | $142,500 | $142,500 | $0 | $93,212 | ' | ' | $23,305 | $23,305 | ' | ' | $0 | $0 | ' | ' |
Loan from Verso Paper Holdings LLC | ' | ' | 23,305 | 23,305 | 23,305 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Fair Value | ' | ' | ' | ' | ' | ' | ' | 448,341 | [1] | 361,388 | [1] | 206,629 | 198,248 | 130,363 | [2] | 159,960 | [2] | 7,986 | 9,650 | 64,125 | 58,995 | 0 | 91,348 | ' | ' | 23,305 | 23,305 | 23,305 | 23,305 | 0 | 0 | -46,610 | -46,610 |
Fair Value | 849,458 | 871,258 | ' | ' | ' | 880,749 | 811,546 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Less loans from affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -46,610 | -46,610 | ||||
Less current maturities of long-term debt | -13,310 | -8,501 | ' | ' | ' | -13,310 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Less current maturities of long-term debt, Fair value | ($7,986) | ($8,331) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
[1] | Par value of $417,882 on DecemberB 31, 2013 and $345,000 on DecemberB 31, 2012 | ||||||||||||||||||||||||||||||||
[2] | Par value of $396,000 on DecemberB 31, 2013 and 2012. |
LongTerm_Debt_Summary_of_LongT1
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) (VERSO PAPER HOLDINGS LLC, USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 21, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
11.75% Senior Secured Notes | 11.75% Senior Secured Notes | 11.75% Senior Secured Notes | 8.75% Second Priority Senior Secured Notes | 8.75% Second Priority Senior Secured Notes | 8.75% Second Priority Senior Secured Notes | |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Debt instrument, par value | $417,882,000 | $345,000,000 | $345,000,000 | $396,000,000 | $396,000,000 | $396,000,000 |
LongTerm_Debt_Interest_Expense
Long-Term Debt - Interest Expense Related to Long-Term Debt and Cash Interests Payments on Long Term Debt (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Debt Instrument [Line Items] | ' | ' | ' | |||
Interest expense | $133,599 | $133,644 | $124,895 | |||
Cash interest paid | 129,467 | 113,334 | 115,651 | |||
Debt issuance cost amortization | 5,398 | [1] | 5,317 | [1] | 5,396 | [1] |
VERSO PAPER HOLDINGS LLC | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | |||
Interest expense | 134,527 | 126,486 | 120,861 | |||
Cash interest paid | 130,830 | 114,849 | 117,043 | |||
Debt issuance cost amortization | $5,368 | [1] | $4,957 | [1] | $5,036 | [1] |
[1] | (1) Amortization of debt issuance cost is included in interest expense. |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||
Jan. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | 4-May-12 | Dec. 31, 2013 | Dec. 31, 2013 | 4-May-12 | Dec. 31, 2013 | Dec. 31, 2013 | 4-May-12 | Dec. 31, 2013 | Dec. 31, 2013 | 31-May-12 | 31-May-12 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2012 | Mar. 21, 2012 | Dec. 31, 2013 | 31-May-12 | 11-May-12 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Aug. 31, 2006 | 31-May-12 | Dec. 31, 2013 | Aug. 31, 2006 | 31-May-12 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2013 | |||
VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | Verso Paper Finance Holdings LLC | Verso Paper Finance Holdings LLC | Verso Paper Finance Holdings LLC | Revolving Credit Facilities | 11.38% Senior Subordinated Notes | Asset Based Loan Facility | Asset Based Loan Facility | Asset Based Loan Facility | Cash Flow Facility | Cash Flow Facility | Cash Flow Facility | Second Priority Senior Secured Floating Rate Notes | Exchange Offer Two | May2012NoteExchangesCombined [Member] | Revolving Credit Facilities | 11.75% Senior Secured Notes | 11.75% Senior Secured Notes | 11.75% Senior Secured Notes | 11.75% Senior Secured Notes | 11.75% Secured Notes | 11.75% Secured Notes | 11.75% Secured Notes | 8.75% Second Priority Senior Secured Notes | 8.75% Second Priority Senior Secured Notes | 8.75% Second Priority Senior Secured Notes | Second Priority Senior Secured Floating Rate Notes | Second Priority Senior Secured Floating Rate Notes | Second Priority Senior Secured Floating Rate Notes | 11.38% Senior Subordinated Notes | 11.38% Senior Subordinated Notes | 11.38% Senior Subordinated Notes | Loan from Verso Paper Holdings LLC | Loan from Verso Paper Holdings LLC | Senior Unsecured Term Loan | Senior Unsecured Term Loan | 11.5% Senior Secured Notes | |||||||
Chase NMTC Verso Investment Fund, LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | Revolving Credit Facilities | Revolving Credit Facilities | Letter of Credit | Revolving Credit Facilities | Revolving Credit Facilities | Letter of Credit | VERSO PAPER HOLDINGS LLC | 11.38% Senior Subordinated Notes | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | Exchange Offer One | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | Exchange Offer Two | Verso Paper Finance Holdings LLC | Verso Paper Finance Holdings LLC | Verso Paper Finance Holdings LLC | VERSO PAPER HOLDINGS LLC | |||||||||||||||
VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | ||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Credit facility, borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $150,000,000 | ' | ' | $50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt issuance costs, deferred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,100,000 | ' | 5,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Credit Facility, outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 42,300,000 | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Credit Facility, remaining borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90,700,000 | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Interest rate | ' | ' | ' | ' | ' | ' | ' | 6.50% | ' | ' | ' | ' | 11.38% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.75% | [1] | ' | ' | ' | 11.75% | ' | ' | 8.75% | [2] | ' | ' | ' | ' | ' | 11.38% | ' | ' | 6.50% | 6.50% | ' | ' | ' |
Maturity date | ' | ' | ' | ' | ' | ' | ' | 29-Dec-40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Jan-19 | [1] | ' | ' | ' | 15-Jan-19 | ' | ' | 1-Feb-19 | [2] | ' | ' | 1-Aug-14 | ' | ' | 1-Aug-16 | ' | ' | 29-Dec-40 | ' | ' | ' | ' |
Debt instrument, maturity date description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'May 4, 2017, unless, on any of the dates that is 91 days prior to the earliest scheduled maturity of any of the Second Priority Senior Secured Floating Rate Notes due 2014, or the 11.38% Senior Subordinated Notes, an aggregate principal amount in excess of $100.0 million of indebtedness under such existing second-lien notes, or subordinated notes, as applicable, is outstanding, in which case the revolving credit facilities will mature on such earlier date. | 'if as of 45 days prior to the maturity dates of our 11.375% Senior Subordinated Notes due 2016, more than $100.0 million of such Senior Subordinated Notes remains outstanding, the notes will mature on that day. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Loan from Verso Paper Holdings LLC | ' | ' | ' | ' | ' | ' | ' | ' | 23,305,000 | 23,305,000 | 23,305,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Principal amount of notes repurchased/repaid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 236,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Gain (loss) on early extinguishment of debt | ' | 0 | -8,244,000 | -26,091,000 | 0 | -8,244,000 | -26,091,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,800,000 | ' | -34,500,000 | ||
Liabilities assumed | 85,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Notes, principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 417,882,000 | ' | 345,000,000 | 345,000,000 | ' | ' | 271,600,000 | 396,000,000 | 396,000,000 | 396,000,000 | ' | 250,000,000 | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ||
Cash paid in exchange offer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Notes issued in exchange offer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 72,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85,800,000 | ' | ||
Notes retired in exchange offer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $157,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $166,900,000 | ' | ' | $157,500,000 | ' | ' | ' | ' | ' | ||
Reference rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Interest rate over the reference rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.99% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt exchange rate | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | Par value of $417,882 on DecemberB 31, 2013 and $345,000 on DecemberB 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||
[2] | Par value of $396,000 on DecemberB 31, 2013 and 2012. |
LongTerm_Debt_Payments_Require
Long-Term Debt - Payments Required Under Long-Term Debt (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Long-term debt by maturity: | ' |
2014 | $13,310 |
2015 | 0 |
2016 | 142,500 |
2017 | 0 |
2019 | 0 |
2019 and thereafter | 1,085,455 |
Total debt | 1,241,265 |
VERSO PAPER HOLDINGS LLC | ' |
Long-term debt by maturity: | ' |
2014 | 13,310 |
2015 | 0 |
2016 | 142,500 |
2017 | 0 |
2019 | 0 |
2019 and thereafter | 1,108,760 |
Total debt | $1,264,570 |
Other_Liabilities_Detail
Other Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other Liabilities [Line Items] | ' | ' |
Pension benefit obligation | $25,231 | $30,416 |
Non-current portion of asset retirement obligations, December 31 | 12,708 | 11,854 |
Non-controlling interests | 7,923 | 7,923 |
Deferred income taxes | 6,174 | 6,774 |
Deferred compensation | 3,495 | 3,396 |
Derivatives | 0 | 225 |
Other | 1,068 | 635 |
Other liabilities | 56,599 | 61,223 |
VERSO PAPER HOLDINGS LLC | ' | ' |
Other Liabilities [Line Items] | ' | ' |
Pension benefit obligation | 25,231 | 30,416 |
Non-current portion of asset retirement obligations, December 31 | 12,708 | 11,854 |
Non-controlling interests | 7,923 | 7,923 |
Deferred compensation | 3,495 | 3,396 |
Derivatives | 0 | 225 |
Other | 1,068 | 634 |
Other liabilities | $50,425 | $54,448 |
Earnings_per_Share_Reconciliat
Earnings per Share (Reconciliation of Basic and Diluted Earnings (Loss) per Common Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net income (loss) available to common shareholders | ($20,000) | ($9,800) | ($43,000) | ($38,400) | $25,500 | ($104,700) | ($20,700) | ($73,900) | ($111,206) | ($173,829) | ($137,061) | ||||||||
Weighted average common stock outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 52,583,000 | 52,365,000 | 52,207,000 | ||||||||
Weighted average restricted stock | ' | ' | ' | ' | ' | ' | ' | ' | 541,000 | 485,000 | 388,000 | ||||||||
Weighted average common shares outstanding - basic | 53,172,000 | [1] | 53,172,000 | [1] | 53,172,000 | [1] | 52,976,000 | [1] | 52,896,000 | [1] | 52,907,000 | [1] | 52,908,000 | [1] | 52,686,000 | [1] | 53,124,000 | 52,850,000 | 52,595,000 |
Dilutive shares from stock options | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ||||||||
Weighted average common shares outstanding - diluted | 53,172,000 | [1] | 53,172,000 | [1] | 53,172,000 | [1] | 52,976,000 | [1] | 52,913,000 | [1] | 52,907,000 | [1] | 52,908,000 | [1] | 52,686,000 | [1] | 53,124,000 | 52,850,000 | 52,595,000 |
Basic loss per share | ($0.38) | [1] | ($0.18) | [1] | ($0.81) | [1] | ($0.72) | [1] | $0.48 | [1] | ($1.98) | [1] | ($0.39) | [1] | ($1.40) | [1] | ($2.09) | ($3.29) | ($2.61) |
Diluted loss per share | ($0.38) | [1] | ($0.18) | [1] | ($0.81) | [1] | ($0.72) | [1] | $0.48 | [1] | ($1.98) | [1] | ($0.39) | [1] | ($1.40) | [1] | ($2.09) | ($3.29) | ($2.61) |
[1] | No dividends were declared or paid in any of the periods presented. |
Earnings_per_Share_Additional_
Earnings per Share - Additional Information (Detail) (Stock Option, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock Option | ' | ' | ' |
Earnings Per Share Disclosure [Line Items] | ' | ' | ' |
Antidilutive shares excluded from computation of earnings per share | 4,344,628 | 3,033,282 | 1,728,127 |
Antidilutive shares, weighted average exercise prices per share | $2.40 | $2.85 | $3.83 |
Retirement_Plans_Defined_Benef
Retirement Plans - Defined Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Curtailment loss | ' | $0 | $1,517,000 | $1,921,000 |
Component of curtailment loss comprised of amortization of prior service cost | ' | ' | 600,000 | 400,000 |
Component of curtailment loss comprised of net actuarial loss | ' | 0 | 945,000 | 1,500,000 |
Amortization of net actuarial loss into net periodic pension cost in next year from accumulated other comprehensive income | 200,000 | ' | ' | ' |
Amortization of prior service cost into net periodic pension cost in next year from accumulated other comprehensive income | 700,000 | ' | ' | ' |
Contribution made by employer | ' | 389,000 | 10,685,000 | 9,600,000 |
Expected cash contributions in 2014 | ' | 10,700,000 | ' | ' |
Accumulated benefit obligation | ' | 78,700,000 | 81,900,000 | ' |
Expected return on plan assets assumption for next fiscal year | ' | 6.50% | 6.50% | 6.50% |
Forecast | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Expected return on plan assets assumption for next fiscal year | ' | 6.50% | ' | ' |
2012 Plan Year | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Expected cash contributions to defined benefit plans in next year | ' | 400,000 | ' | ' |
2013 Plan Year | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Expected cash contributions to defined benefit plans in next year | ' | $0 | ' | ' |
Retirement_Plans_Defined_Benef1
Retirement Plans - Defined Benefit Plans - Components of Net Periodic Benefit Cost (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Service cost | $6,613 | $7,082 | $6,694 |
Interest cost | 3,115 | 2,876 | 2,521 |
Expected return on plan assets | -3,303 | -2,791 | -2,234 |
Amortization of actuarial loss | 1,631 | 1,648 | 393 |
Amortization of prior service cost | 651 | 740 | 1,176 |
Curtailment | 0 | 1,517 | 1,921 |
Net periodic pension cost | $8,707 | $11,072 | $10,471 |
Retirement_Plans_Defined_Benef2
Retirement Plans - Defined Benefit Plans - Detail of Prior Service Cost and Net Actuarial Loss Recognized In Accumulated Other Comprehensive Income (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Amounts recognized in Accumulated other comprehensive loss: | ' | ' |
Prior service cost | $1,923 | $2,574 |
Net actuarial loss | $9,512 | $22,364 |
Retirement_Plans_Defined_Benef3
Retirement Plans - Defined Benefit Plans - Reconciliation of Projected Benefit Obligation and Funded Status (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in Projected Benefit Obligation: | ' | ' | ' |
Benefit obligation at beginning of fiscal year | $81,944 | $67,686 | ' |
Service cost | 6,613 | 7,082 | 6,694 |
Interest cost | 3,115 | 2,876 | 2,521 |
Actuarial (gain) loss | -10,472 | 4,915 | ' |
Benefits paid | -2,499 | -1,560 | ' |
Curtailment | 0 | -945 | -1,500 |
Benefit obligation at end of fiscal year | 78,701 | 81,944 | 67,686 |
Change in Plan Assets: | ' | ' | ' |
Plan assets at fair value at beginning of fiscal year | 51,528 | 38,883 | ' |
Actual net return (loss) on plan assets | 4,052 | 3,520 | ' |
Employer contributions | 389 | 10,685 | 9,600 |
Benefits paid | -2,499 | -1,560 | ' |
Plan assets at fair value at end of fiscal year | 53,470 | 51,528 | 38,883 |
Unfunded projected benefit obligation recognized in other liabilities on the consolidated balance sheets | ($25,231) | ($30,416) | ' |
Retirement_Plans_Defined_Benef4
Retirement Plans - Defined Benefit Plans - Summary of Expected Future Pension Benefit Payments (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Expected future pension benefit payments: | ' |
2014 | $2,331 |
2015 | 2,561 |
2016 | 2,829 |
2017 | 3,165 |
2018 | 3,592 |
2019-2023 | $25,849 |
Retirement_Plans_Defined_Benef5
Retirement Plans - Defined Benefit Plans - Actuarial Assumptions Used In Defined Benefit Pension Plans (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Weighted average assumptions used to determine benefit obligations as of December 31: | ' | ' | ' |
Discount rate | 4.75% | 3.80% | 4.30% |
Weighted average assumptions used to determine net periodic pension cost for the fiscal year: | ' | ' | ' |
Discount rate | 3.84% | 4.30% | 5.40% |
Expected long-term return on plan assets | 6.50% | 6.50% | 6.50% |
Retirement_Plans_Defined_Benef6
Retirement Plans - Defined Benefit Plans - Pension Plan's Asset Allocation (Detail) (Employees at the Androscoggin, Bucksport, and Sartell mills) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | |
Other securities | Money market funds | Money market funds | Fixed income funds | Fixed income funds | Other funds | Other funds | Equity securities | Domestic equity funds - large cap | Domestic equity funds - large cap | Domestic equity funds - small cap | Domestic equity funds - small cap | International equity funds | International equity funds | Minimum | Minimum | Maximum | Maximum | |
Other securities | Equity securities | Other securities | Equity securities | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Targeted Allocation | 60.00% | ' | ' | ' | ' | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | 70.00% | 20.00% | 80.00% | 30.00% |
Allocation | ' | 0.00% | 1.00% | 48.00% | 66.00% | 10.00% | 1.00% | ' | 24.00% | 22.00% | 12.00% | 5.00% | 6.00% | 5.00% | ' | ' | ' | ' |
Retirement_Plans_Defined_Benef7
Retirement Plans - Defined Benefit Plans - Pension Plan Assets at Fair Value (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Assets at fair value | $53,470 | $51,528 | $38,883 |
Fixed income funds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Assets at fair value | 25,764 | 34,021 | ' |
Domestic equity funds - large cap | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Assets at fair value | 13,086 | 11,346 | ' |
Domestic equity funds - small cap | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Assets at fair value | 6,214 | 2,693 | ' |
International equity funds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Assets at fair value | 3,167 | 2,331 | ' |
Money market funds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Assets at fair value | 0 | 632 | ' |
Other funds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Assets at fair value | 5,239 | 505 | ' |
Fair Value, Inputs, Level 1 | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Assets at fair value | 53,470 | 39,015 | ' |
Fair Value, Inputs, Level 1 | Fixed income funds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Assets at fair value | 25,764 | 34,021 | ' |
Fair Value, Inputs, Level 1 | Domestic equity funds - large cap | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Assets at fair value | 13,086 | ' | ' |
Fair Value, Inputs, Level 1 | Domestic equity funds - small cap | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Assets at fair value | 6,214 | 2,693 | ' |
Fair Value, Inputs, Level 1 | International equity funds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Assets at fair value | 3,167 | 1,164 | ' |
Fair Value, Inputs, Level 1 | Money market funds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Assets at fair value | 0 | 632 | ' |
Fair Value, Inputs, Level 1 | Other funds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Assets at fair value | 5,239 | 505 | ' |
Fair Value, Inputs, Level 2 | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Assets at fair value | ' | 12,513 | ' |
Fair Value, Inputs, Level 2 | Domestic equity funds - large cap | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Assets at fair value | ' | 11,346 | ' |
Fair Value, Inputs, Level 2 | International equity funds | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Assets at fair value | ' | $1,167 | ' |
Retirement_Plans_Defined_Contr
Retirement Plans - Defined Contribution Plans - Additional Information (Detail) (Salaried and Quinnesec hourly employees defined contribution plan, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Salaried and Quinnesec hourly employees defined contribution plan | ' | ' | ' |
Defined Contribution Plan [Line Items] | ' | ' | ' |
Defined contribution plan expense | $4.80 | $5.60 | $7.60 |
Retirement_Plans_Other_Benefit
Retirement Plans - Other Benefits - Additional Information (Detail) (Defined Contribution Pension Plan 401k, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Contribution Pension Plan 401k | ' | ' | ' |
Defined Contribution Plan [Line Items] | ' | ' | ' |
Employer matching contribution | $6.70 | $7.20 | $8.60 |
Equity_Awards_Additional_Infor
Equity Awards - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Authorized shares for issuance | 6,250,000 | ' | ' |
Equity award expense | $1,805,000 | $2,677,000 | $2,420,000 |
Non-employee director stock option | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting rights | 'vest upon grant | ' | ' |
Expiration period | '10 years | ' | ' |
Officer and management non-qualified time - based stock options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting rights | 'one to three years from the date of grant | ' | ' |
Expiration period | '7 years | ' | ' |
Officer and management performance-based options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting rights | 'one to three years from the date of grant based on the achievement of certain performance criteria tied to Verso Paperbs calculation of Adjusted EBITDA | ' | ' |
Expiration period | '7 years | ' | ' |
Increase in fair value of award from plan modification | ' | ' | 100,000 |
Service and performance-based employee and director stock options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Unrecognized compensation cost | 1,500,000 | ' | ' |
Weighted average period over which unearned share-based compensation cost is expected to be recognized | '1 year 7 months 14 days | ' | ' |
Restricted stock award | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Granted | 295,336 | 320,414 | 158,057 |
Weighted-average grant date fair value | $1.29 | $1.20 | $5.70 |
Vesting period | '3 years | ' | ' |
Unrecognized compensation cost | $400,000 | ' | ' |
Weighted average period over which unearned share-based compensation cost is expected to be recognized | '1 year 9 months 7 days | ' | ' |
Legacy Class B Units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period | '5 years | ' | ' |
Annual vesting rate | 20.00% | ' | ' |
Equity_Awards_Stock_Option_Pla
Equity Awards - Stock Option Plan Activity (Detail) (Service and performance-based employee and director stock options, USD $) | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Service and performance-based employee and director stock options | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ||
Options outstanding, beginning balance | 3,885,193 | 1,781,499 | 1,388,746 | [1] | |
Options granted | 564,442 | 2,193,701 | 430,855 | ||
Options forfeited | -15,929 | -90,007 | -32,295 | ||
Options exercised | ' | ' | -5,807 | ||
Options outstanding, ending balance | 4,433,706 | [2] | 3,885,193 | 1,781,499 | |
Average exercise price, beginning of period | $2.53 | $3.90 | $3.36 | [1] | |
Average exercise price, options granted | $1.29 | $1.46 | $5.63 | ||
Average exercise price, forfeited | $1.53 | $3.48 | $3.97 | ||
Average exercise price, exercised | ' | ' | $2.88 | ||
Average exercise price, end of period | $2.38 | [2] | $2.53 | $3.90 | |
Average grant date fair value, beginning of period | $1.73 | $2.59 | $2.05 | [1] | |
Average grant date fair value, options granted | $0.93 | $1.07 | $4.13 | ||
Average grant date fair value, forfeited | $1.09 | $2.52 | $2.68 | ||
Average grant date fair value, exercised | ' | ' | $2 | ||
Average grant date fair value, end of period | $1.63 | [2] | $1.73 | $2.59 | |
Average remaining contractual life, options outstanding | '4 years 7 months 14 days | [2] | ' | ' | |
Options exercisable on December 31, 2013 | 2,304,798 | [2] | ' | ' | |
Average exercise price, options exercisable | $3.03 | [2] | ' | ' | |
Average remaining contractual life, options exercisable | '3 years 9 months 22 days | [2] | ' | ' | |
Aggregate intrinsic value, options exercisable | $0 | [2] | ' | ' | |
Options expected to vest as of December 31, 2013 | 2,128,908 | ' | ' | ||
Average exercise price, options expected to vest | $1.68 | ' | ' | ||
Aggregate intrinsic value, options expected to vest | $0 | ' | ' | ||
[1] | On December 31, 2010, there were an additional 19,094 of performance-based options for which the performanceB period had not begun.B These options were classified as liability awards and had a weighted average fair values of $2.40 at December 31, 2010. | ||||
[2] | On DecemberB 31, 2013, options outstanding had exercise prices ranging from $0.71 to $5.93 and options exercisable had exercise prices ranging from $0.71 to $5.93 |
Equity_Awards_Stock_Option_Pla1
Equity Awards - Stock Option Plan Activity (Parenthetical) (Detail) (Verso Paper Corp. 2008 Incentive Award Plan, Service and performance-based employee and director stock options, USD $) | Dec. 31, 2013 | Dec. 31, 2011 |
Verso Paper Corp. 2008 Incentive Award Plan | Service and performance-based employee and director stock options | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Performance-based awards issued but excluded from options outstanding because their performance periods had not commenced | ' | 19,094 |
Weighted average fair value of performance-based awards issued but excluded from options outstanding because their performance periods had not commenced | ' | $2.40 |
Options outstanding, lowest exercise price in range | $0.71 | ' |
Options outstanding, highest exercise price in range | $5.93 | ' |
Options exercisable, lowest exercise price in range | $0.71 | ' |
Options exercisable, highest exercise price in range | $5.93 | ' |
Equity_Awards_Assumptions_Used
Equity Awards - Assumptions Used to Estimate Fair Value of Stock Options Granted (Detail) (Verso Paper Corp. 2008 Incentive Award Plan, Service and performance-based employee and director stock options) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected weighted-average life of options granted | '4 years 6 months | ' | ' |
Volatility rates based on historical industry volatility | 100.52% | ' | 90.65% |
Risk-free interest rates | 0.81% | ' | ' |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected weighted-average life of options granted | ' | '3 years | '3 years |
Volatility rates based on historical industry volatility | ' | 94.39% | ' |
Risk-free interest rates | ' | 0.57% | 1.18% |
Maximum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected weighted-average life of options granted | ' | '5 years | '5 years |
Volatility rates based on historical industry volatility | ' | 102.22% | ' |
Risk-free interest rates | ' | 0.83% | 2.16% |
Recovered_Sheet5
Bucksport Energy Asset Investment - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | $4,946 | $3,454 |
Ownership of steam and electricity produced | 28.00% | ' |
Obligation to purchase steam output | 72.00% | ' |
Jointly Owned Utility Plant | Intangibles and other assets | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | $2,300 | $700 |
Recovered_Sheet6
Bucksport Energy Asset Investment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Jointly Owned Utility Plant Interests [Line Items] | ' | ' | ||
Other receivables | $104,498 | $100,888 | ||
Current liabilities | -224,057 | -220,936 | ||
Jointly Owned Utility Plant | ' | ' | ||
Jointly Owned Utility Plant Interests [Line Items] | ' | ' | ||
Other receivables | 281 | 413 | ||
Other assets | 214 | [1] | 220 | [1] |
Property, plant, and equipment | 10,692 | 10,697 | ||
Accumulated depreciation | -4,668 | -3,971 | ||
Net property, plant, and equipment | 6,024 | 6,726 | ||
Current liabilities | ($83) | ($159) | ||
[1] | (1) Represents primarily restricted cash which may be used only to fund the ongoing energy operations of this investment. |
Recovered_Sheet7
Derivative Instruments and Hedges - Schedule of Information About Volume and Fair Value Amounts of Derivative Instruments (Detail) (Not Designated as Hedging Instrument, Commodity swaps, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | MMBTU | MMBTU |
Derivative [Line Items] | ' | ' |
Notional amount | 6,652,070 | 6,194,726 |
Accrued Liabilities | ' | ' |
Derivative [Line Items] | ' | ' |
Fair Value Liabilities | -4,959 | -3,909 |
Other Liabilities | ' | ' |
Derivative [Line Items] | ' | ' |
Fair Value Liabilities | 0 | -225 |
Prepaid Expenses and Other Assets | ' | ' |
Derivative [Line Items] | ' | ' |
Fair Value Asset | 15,505 | 20 |
Intangibles and Other Assets Net | ' | ' |
Derivative [Line Items] | ' | ' |
Fair Value Asset | 0 | 29 |
Recovered_Sheet8
Derivative Instruments and Hedges - Schedule of Information About Effect of Derivative Instruments on Accumulated Other Comprehensive Income and Consolidated Statements of Operations (Detail) (Commodity swaps, USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Designated as Hedging Instrument | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Loss Recognized in Accumulated OCI | $0 | ($1,365) | ($5,188) | |||
Loss Reclassified from Accumulated OCI | 0 | [1] | -283 | [1] | -2,838 | [1] |
Gain (Loss) Recognized on Derivatives | 0 | -50 | -1,189 | |||
Not Designated as Hedging Instrument | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Loss Reclassified from Accumulated OCI | -335 | [1] | -5,573 | [1] | ' | |
Gain (Loss) Recognized on Derivatives | $16,117 | ($2,973) | ($8,643) | |||
[1] | Loss reclassified from Accumulated OCI to earnings is included in Cost of products sold. |
Recovered_Sheet9
Fair Value of Financial Instruments - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred compensation | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments, Fair Value Disclosure | $3,495 | $3,396 |
Commodity swaps | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets | 15,505 | 49 |
Fair value of liabilities | 4,959 | 4,134 |
Fair Value, Inputs, Level 1 | Deferred compensation | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments, Fair Value Disclosure | 3,495 | 3,396 |
Fair Value, Inputs, Level 2 | Commodity swaps | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets | 15,505 | 49 |
Fair value of liabilities | $4,959 | $4,134 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 29, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 29, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2013 | Dec. 31, 2013 | |||
VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | Chase NMTC Verso Investment Fund, LLC | Chase NMTC Verso Investment Fund, LLC | Chase NMTC Verso Investment Fund, LLC | Chase NMTC Verso Investment Fund, LLC | Chase NMTC Verso Investment Fund, LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | Verso Paper Finance Holdings LLC | Verso Paper Finance Holdings LLC | Verso Paper Finance Holdings LLC | Verso Paper Finance Holdings LLC | Verso Paper Finance Holdings LLC | Verso Paper Finance Holdings LLC | Verso Paper Finance Holdings LLC | Verso Paper Finance Holdings LLC | Paid-in Capital | Paid-in Capital | 11.75% Senior Secured Notes | 11.75% Senior Secured Notes | 11.75% Senior Secured Notes | Senior Unsecured Term Loan | Management Agreement | |||||
Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | Verso Paper Finance Holdings LLC | ||||||||||||||||
Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | |||||||||||||||||||||||||||
Chase NMTC Verso Investment Fund, LLC | Chase NMTC Verso Investment Fund, LLC | Chase NMTC Verso Investment Fund, LLC | Chase NMTC Verso Investment Fund, LLC | |||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Management agreement expiration date | 1-Jun-17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Aug-18 | ||
Management fee as a percentage of aggregate enterprise value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ||
Notes, maturity date | ' | ' | ' | ' | ' | 29-Dec-40 | 29-Dec-40 | ' | ' | ' | ' | ' | ' | 29-Dec-40 | ' | ' | ' | 29-Dec-40 | 29-Dec-40 | 29-Dec-40 | ' | ' | ' | 15-Jan-19 | [1] | ' | ' | ' | ' | |
Principal amount of debt issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $72,900,000 | ' | $85,800,000 | ' | ||
Return of capital | ' | ' | -94,878,000 | 776,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -94,878,000 | 776,000 | ' | ' | ' | ' | ' | ||
Long-term debt | 1,235,167,000 | 1,248,458,000 | 1,271,782,000 | 1,187,052,000 | ' | ' | 23,305,000 | 23,305,000 | ' | 23,305,000 | ' | ' | ' | 23,305,000 | 23,305,000 | ' | 23,305,000 | ' | ' | ' | ' | ' | ' | 426,076,000 | [1] | ' | 341,493,000 | [1] | ' | ' |
Related party debt, stated interest rate | ' | ' | ' | ' | ' | 6.50% | ' | ' | ' | 6.50% | ' | ' | ' | ' | ' | ' | 6.50% | 6.50% | 6.50% | ' | 6.50% | ' | ' | 11.75% | [1] | ' | ' | ' | ' | |
Long-term notes receivable from a related party | ' | ' | 23,305,000 | 23,305,000 | ' | ' | ' | ' | ' | ' | 23,300,000 | 23,305,000 | ' | 23,305,000 | 23,305,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Accrued interest receivable from a related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | 100,000 | ' | 100,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Accrued interest payable to a related party | ' | ' | ' | ' | ' | ' | 100,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Interest income recognized from transactions with a related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Interest expense incurred from transactions with a related party | ' | ' | ' | ' | ' | ' | 1,500,000 | 1,500,000 | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Capital contribution from a parent | ' | ' | 0 | 776,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Distribution To Parent | ' | ' | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | Par value of $417,882 on DecemberB 31, 2013 and $345,000 on DecemberB 31, 2012 |
Restructuring_Charges_Addition
Restructuring Charges - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 27 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | ||||||||
machine | ||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Number of Machines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ||||||||
Restructuring charges | $100 | [1] | $100 | [1] | $200 | [1] | $1,000 | [1] | $5,400 | [1] | $97,000 | [1] | ($100) | [1] | $100 | [1] | $1,378 | $102,404 | $24,464 | $128,246 |
Pension and Workers' Compensation [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500 | ' | ' | ||||||||
Salary And Benefit [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | ' | $500 | $1,300 | ' | ' | ||||||||
[1] | Represents costs primarily associated with the closure of the former Sartell mill in 2012 |
Restructuring_Charges_Charges_
Restructuring Charges - Charges Incurred Related to Shutdown (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 27 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | ||||||||
Restructuring and Related Cost [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Restructuring charges | $100 | [1] | $100 | [1] | $200 | [1] | $1,000 | [1] | $5,400 | [1] | $97,000 | [1] | ($100) | [1] | $100 | [1] | $1,378 | $102,404 | $24,464 | $128,246 |
Property and equipment impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Restructuring and Related Cost [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 66,521 | 7,068 | 73,589 | ||||||||
Severance and benefit costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Restructuring and Related Cost [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | ' | 688 | 19,373 | 15,004 | 35,065 | ||||||||
Write-off of related spare parts and inventory | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Restructuring and Related Cost [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 6,934 | 2,278 | 9,212 | ||||||||
Trademark Impairment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Restructuring and Related Cost [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 3,693 | 0 | 3,693 | ||||||||
Write-off of purchase obligations and commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Restructuring and Related Cost [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | ' | -594 | 2,420 | 0 | 1,826 | ||||||||
Other miscellaneous costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Restructuring and Related Cost [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | ' | $1,284 | $3,463 | $114 | $4,861 | ||||||||
[1] | Represents costs primarily associated with the closure of the former Sartell mill in 2012 |
Restructuring_Charges_Changes_
Restructuring Charges - Changes in Restructuring Reserve Liabilities (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Beginning balance of reserve | $5,098 | $10,763 |
Severance and benefit costs | 196 | 15,500 |
Purchase obligations | 0 | 2,488 |
Ending balance of reserve | 0 | 5,098 |
Severance and benefit costs | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring payments | -3,678 | -22,230 |
Purchase obligation reserve adjustments | -461 | 0 |
Purchase obligations | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring payments | -561 | -1,355 |
Purchase obligation reserve adjustments | ($594) | ($68) |
Income_Taxes_Summary_of_Compon
Income Taxes - Summary of Components of (Benefit) Provision for Income Taxes (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current tax provision (benefit): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
U.S. federal | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 |
U.S. state and local | ' | ' | ' | ' | ' | ' | ' | ' | 38 | -96 | 281 |
Current tax (benefit) provision | ' | ' | ' | ' | ' | ' | ' | ' | 38 | -96 | 281 |
Deferred tax (benefit) provision: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
U.S. federal | ' | ' | ' | ' | ' | ' | ' | ' | -120,029 | -58,563 | -40,038 |
U.S. state and local | ' | ' | ' | ' | ' | ' | ' | ' | -12,621 | -6,486 | -7,047 |
Deferred tax (benefit) provision | ' | ' | ' | ' | ' | ' | ' | ' | -132,650 | -65,049 | -47,085 |
Valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | 132,050 | 63,721 | 47,001 |
Income tax (benefit) provision | ($600) | $0 | $0 | $0 | ($1,300) | $0 | $0 | ($100) | ($562) | ($1,424) | $197 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Income Tax Expense Using Statutory Federal Income Tax Rate Compared with Actual Income Tax Expense (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Effective income tax reconciliation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax at Statutory U.S. Rate of 34% | ' | ' | ' | ' | ' | ' | ' | ' | ($38,001) | ($59,586) | ($46,456) |
Increase resulting from: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition transaction costs | ' | ' | ' | ' | ' | ' | ' | ' | 1,756 | 0 | 0 |
Meals and entertainment | ' | ' | ' | ' | ' | ' | ' | ' | 173 | 197 | 169 |
Nondeductible lobbying expenses | ' | ' | ' | ' | ' | ' | ' | ' | 80 | 46 | 38 |
Disallowed compensation | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 680 | 0 |
Goodwill impairment | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 6,356 |
Equity award expense | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 55 |
Other disallowed expenses | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 36 | 1 |
Net permanent differences | ' | ' | ' | ' | ' | ' | ' | ' | 2,013 | 959 | 6,619 |
Valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | 132,050 | 63,721 | 47,001 |
Benefit from change in prior tax position | ' | ' | ' | ' | ' | ' | ' | ' | -93,039 | 0 | 0 |
State income taxes (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -3,740 | -6,550 | -6,861 |
Return to provision | ' | ' | ' | ' | ' | ' | ' | ' | 155 | 32 | -106 |
Income tax (benefit) provision | ($600) | $0 | $0 | $0 | ($1,300) | $0 | $0 | ($100) | ($562) | ($1,424) | $197 |
Income_Taxes_Reconciliation_of1
Income Taxes - Reconciliation of Income Tax Expense Using Statutory Federal Income Tax Rate Compared with Actual Income Tax Expense (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | ($93,039) | $0 | $0 |
Statutory U.S. Rate | 34.00% | 34.00% | 34.00% |
Income_Taxes_Summary_of_Signif
Income Taxes - Summary of Significant Components of Deferred Tax Position (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Deferred tax assets: | ' | ' | ' |
Net operating loss and credit carryforwards | $417,536 | $272,575 | ' |
Payment-in-kind interest | 10,211 | 11,082 | ' |
Pension | 9,606 | 11,403 | ' |
Compensation reserves | 8,348 | 6,755 | ' |
Inventory reserves | 7,546 | 7,103 | ' |
Inventory capitalization | 2,885 | 2,492 | ' |
Unrealized hedge losses | 0 | 1,559 | ' |
Bad debt reserves | 841 | 900 | ' |
Other | 2,046 | 1,665 | ' |
Gross deferred tax assets | 459,019 | 315,534 | ' |
Less: valuation allowance | -323,335 | -195,695 | -132,100 |
Deferred tax assets, net of allowance | 135,684 | 119,839 | ' |
Deferred tax liabilities: | ' | ' | ' |
Property, plant, and equipment | -100,507 | -84,241 | ' |
Cancellation of debt income deferral | -21,878 | -26,127 | ' |
Intangible assets | -8,241 | -9,148 | ' |
Deferred repair charges | -6,188 | -6,657 | ' |
Unrealized hedge income | -4,046 | 0 | ' |
Prepaid expenses | -998 | -440 | ' |
Total deferred tax liabilities | -141,858 | -126,613 | ' |
Net deferred tax liabilities | ($6,174) | ($6,774) | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes [Line Items] | ' | ' | ' |
Valuation allowance for deferred tax assets | $323,335,000 | $195,695,000 | $132,100,000 |
Increase in valuation allowance for deferred tax assets | 127,600,000 | 63,600,000 | ' |
Reduction in income tax benefits | 132,050,000 | 63,721,000 | 47,001,000 |
Federal net operating loss carryforwards | 1,112,200,000 | ' | ' |
State net operating loss carryforwards | 703,600,000 | ' | ' |
Pension Prior Service Liability | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Reduction in income tax benefits | $6,700,000 | ' | ' |
Recovered_Sheet10
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Supply agreement expiration date | 1-Jun-17 | ' | ' |
Supply agreement, description | 'The agreement requires Expera Specialty Solutions, LLC (formerly named Thilmany, LLC) to pay us a variable charge for the paper purchased and a fixed charge for the availability of the no. 5 paper machine. | ' | ' |
Operating Leases, Rent Expense | $9.80 | $9.20 | $7.70 |
Latest Expiration | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Operating leases, expiration year | '2022 | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Schedule of Future Minimum Rental Payments Due Under Non-Cancelable Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Future minimum operating lease payments due | ' |
2014 | $5,259 |
2015 | 2,674 |
2016 | 973 |
2017 | 414 |
2018 | 162 |
Thereafter | 226 |
Total | $9,708 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Unconditional Purchase Obligations (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Unconditional purchase obligations, rolling maturity | ' |
2014 | $85,475 |
2015 | 44,669 |
2016 | 38,613 |
2017 | 38,935 |
2018 | 37,643 |
Thereafter | 129,685 |
Total | $375,020 |
Recovered_Sheet11
New Market Tax Credit Entities - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 29, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 29, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Verso Paper Finance Holdings LLC | Verso Paper Finance Holdings LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | ||||
Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | ||||||||
Chase NMTC Verso Investment Fund, LLC | Chase NMTC Verso Investment Fund, LLC | Chase NMTC Verso Investment Fund, LLC | Chase NMTC Verso Investment Fund, LLC | Chase NMTC Verso Investment Fund, LLC | Chase NMTC Verso Investment Fund, LLC | ||||||||
Verso Paper Finance Holdings LLC | Verso Paper Finance Holdings LLC | Verso Paper Finance Holdings LLC | Verso Paper Finance Holdings LLC | ||||||||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Renewable energy project amount | ' | ' | $43,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related party debt, outstanding amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,305,000 | 23,305,000 | ' | 23,305,000 |
Related party debt, stated interest rate | ' | ' | ' | ' | 6.50% | ' | ' | ' | ' | 6.50% | 6.50% | ' | 6.50% |
Related party debt, maturity date | ' | ' | ' | 29-Dec-40 | ' | ' | ' | ' | ' | 29-Dec-40 | 29-Dec-40 | 29-Dec-40 | ' |
Non-controlling interests | $7,923,000 | $7,923,000 | ' | ' | ' | $7,923,000 | $7,923,000 | ' | ' | ' | ' | ' | ' |
Put option, anticipated exercise date | ' | ' | ' | ' | ' | ' | ' | ' | '2017-12 | ' | ' | ' | ' |
Tax credit, recapture percentage | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' |
Tax credit, recapture period | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' |
Recovered_Sheet12
New Market Tax Credit Entities - Schedule of Impact of Consolidated VIE (Detail) (USD $) | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Current assets | Non-current assets | Current liabilities | Other non-current liabilities | Chase NMTC Verso Investment Fund, LLC | Chase NMTC Verso Investment Fund, LLC | Chase NMTC Verso Investment Fund, LLC | Chase NMTC Verso Investment Fund, LLC | Chase NMTC Verso Investment Fund, LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | |
Current assets | Non-current assets | Current liabilities | Other non-current liabilities | Current assets | Non-current assets | Current liabilities | Long-term debt | Other non-current liabilities | Chase NMTC Verso Investment Fund, LLC | Chase NMTC Verso Investment Fund, LLC | Chase NMTC Verso Investment Fund, LLC | Chase NMTC Verso Investment Fund, LLC | Chase NMTC Verso Investment Fund, LLC | Chase NMTC Verso Investment Fund, LLC | ||||||||
Current assets | Non-current assets | Current liabilities | Long-term debt | Other non-current liabilities | ||||||||||||||||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable interest entity, consolidated assets | $109 | $24 | $85 | ' | ' | $100 | $15 | $85 | ' | ' | $23,414 | $24 | $23,390 | ' | ' | ' | $23,405 | $15 | $23,390 | ' | ' | ' |
Variable interest entity, consolidated liabilities | $7,946 | ' | ' | $23 | $7,923 | $7,938 | ' | ' | $15 | $7,923 | $31,377 | ' | ' | $149 | $23,305 | $7,923 | $31,369 | ' | ' | $141 | $23,305 | $7,923 |
Recovered_Sheet13
Information by Industry Segment - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of reporting segments | 3 |
Recovered_Sheet14
Information by Industry Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net sales | $350,400 | $374,900 | $330,400 | $333,200 | $361,000 | $373,000 | $365,300 | $375,300 | $1,388,899 | $1,474,612 | $1,722,489 | |
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 33,900 | -32,421 | 15,686 | |
Depreciation, amortization, and depletion | ' | ' | ' | ' | ' | ' | ' | ' | 104,730 | 118,178 | 125,295 | |
Capital Spending | ' | ' | ' | ' | ' | ' | ' | ' | 40,660 | 59,909 | 90,272 | |
Coated papers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,062,555 | 1,177,050 | 1,418,817 | |
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 14,546 | -26,166 | [1] | -4,726 |
Depreciation, amortization, and depletion | ' | ' | ' | ' | ' | ' | ' | ' | 77,976 | 90,740 | 98,370 | |
Capital Spending | ' | ' | ' | ' | ' | ' | ' | ' | 33,595 | 57,807 | 65,227 | |
Hardwood Market Pulp | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 156,099 | 140,816 | 150,111 | |
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 21,540 | 9,215 | 33,357 | |
Depreciation, amortization, and depletion | ' | ' | ' | ' | ' | ' | ' | ' | 18,125 | 18,000 | 17,249 | |
Capital Spending | ' | ' | ' | ' | ' | ' | ' | ' | 5,752 | -325 | [2] | 23,695 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 170,245 | 156,746 | 153,561 | |
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | -2,186 | -15,470 | -12,945 | |
Depreciation, amortization, and depletion | ' | ' | ' | ' | ' | ' | ' | ' | 8,629 | 9,438 | 9,676 | |
Capital Spending | ' | ' | ' | ' | ' | ' | ' | ' | 1,313 | 2,427 | 1,350 | |
VERSO PAPER HOLDINGS LLC | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,388,899 | 1,474,612 | 1,722,489 | |
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 33,900 | -32,370 | 23,882 | |
Depreciation, amortization, and depletion | ' | ' | ' | ' | ' | ' | ' | ' | 104,730 | 118,178 | 125,295 | |
Capital Spending | ' | ' | ' | ' | ' | ' | ' | ' | 40,660 | 59,909 | 90,272 | |
VERSO PAPER HOLDINGS LLC | Coated papers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,062,555 | 1,177,050 | 1,418,817 | |
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 14,546 | -26,115 | [1] | 3,470 |
Depreciation, amortization, and depletion | ' | ' | ' | ' | ' | ' | ' | ' | 77,976 | 90,740 | 98,370 | |
Capital Spending | ' | ' | ' | ' | ' | ' | ' | ' | 33,595 | 57,807 | 65,227 | |
VERSO PAPER HOLDINGS LLC | Hardwood Market Pulp | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 156,099 | 140,816 | 150,111 | |
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 21,540 | 9,215 | 33,357 | |
Depreciation, amortization, and depletion | ' | ' | ' | ' | ' | ' | ' | ' | 18,125 | 18,000 | 17,249 | |
Capital Spending | ' | ' | ' | ' | ' | ' | ' | ' | 5,752 | -325 | [2] | 23,695 |
VERSO PAPER HOLDINGS LLC | Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 170,245 | 156,746 | 153,561 | |
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | -2,186 | -15,470 | -12,945 | |
Depreciation, amortization, and depletion | ' | ' | ' | ' | ' | ' | ' | ' | 8,629 | 9,438 | 9,676 | |
Capital Spending | ' | ' | ' | ' | ' | ' | ' | ' | $1,313 | $2,427 | $1,350 | |
[1] | Included here is the effect of $102.4 million in Restructuring charges, offset by $60.6 million in Other operating income, recognized in 2012, which is entirely attributable to the coated papers segment. | |||||||||||
[2] | Included here is the effect, attributable to the pulp segment, of a $14.7 million cash inflow received in 2012 from governmental grants associated with a renewable energy project at our mill in Quinnesec, Michigan, due to spending in 2011. |
Information_by_Industry_Segmen2
Information by Industry Segment (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 27 Months Ended | |||||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | |||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Restructuring charges | $100,000 | [1] | $100,000 | [1] | $200,000 | [1] | $1,000,000 | [1] | $5,400,000 | [1] | $97,000,000 | [1] | ($100,000) | [1] | $100,000 | [1] | $1,378,000 | $102,404,000 | $24,464,000 | $128,246,000 |
Other operating income | 0 | [2] | 0 | [2] | 700,000 | [2] | 3,300,000 | [2] | -60,600,000 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 3,971,000 | 60,594,000 | 0 | ' |
Coated Papers [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | 102,400,000 | ' | ' | ||||||||
Coated papers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Other operating income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,600,000 | ' | ' | ||||||||
Hardwood Market Pulp | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Cash inflow from Govermental grants associated with a renewable energy project | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14,700,000 | ' | ' | ||||||||
[1] | Represents costs primarily associated with the closure of the former Sartell mill in 2012 | |||||||||||||||||||
[2] | Represents gain on sale of the former Sartell mill and Fiber Farm LLC in 2013 and gain on insurance settlement resulting from the fire at the former Sartell mill in 2012. |
Recovered_Sheet15
Condensed Consolidating Financial Information - Additional Information (Detail) (VERSO PAPER HOLDINGS LLC) | 12 Months Ended |
Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | ' |
Percentage of ownership interest in subsidiary | 100.00% |
11.75% Senior Secured Notes | ' |
Condensed Financial Statements, Captions [Line Items] | ' |
Stated interest rate | 11.75% |
Debt Instrument Maturity Year | '2019 |
11.75% Secured Notes | ' |
Condensed Financial Statements, Captions [Line Items] | ' |
Debt Instrument Maturity Year | '2019 |
8.75% Second Priority Senior Secured Notes | ' |
Condensed Financial Statements, Captions [Line Items] | ' |
Stated interest rate | 8.75% |
Debt Instrument Maturity Year | '2019 |
11.38% Senior Subordinated Notes | ' |
Condensed Financial Statements, Captions [Line Items] | ' |
Stated interest rate | 11.38% |
Debt Instrument Maturity Year | '2016 |
Second Priority Senior Secured Floating Rate Notes | ' |
Condensed Financial Statements, Captions [Line Items] | ' |
Debt Instrument Maturity Year | '2014 |
Condensed_Consolidating_Balanc
Condensed Consolidating Balance Sheet (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||
In Thousands, unless otherwise specified | ||||||
ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | $11,295 | $61,525 | $94,869 | $152,780 | ||
Accounts receivable, net | 104,498 | 100,888 | ' | ' | ||
Inventories | 137,687 | 131,467 | ' | ' | ||
Assets held for sale | 50 | 24,867 | ' | ' | ||
Prepaid expenses and other assets | 20,621 | 4,026 | ' | ' | ||
Current assets | 274,151 | 322,773 | ' | ' | ||
Property, plant, and equipment, net | 742,946 | 793,031 | ' | ' | ||
Intangibles and other assets, net(1) | 81,455 | 93,127 | ' | ' | ||
Total assets | 1,098,552 | 1,208,931 | ' | ' | ||
LIABILITIES AND MEMBER'S EQUITY | ' | ' | ' | ' | ||
Accounts payable | 88,412 | 92,079 | ' | ' | ||
Accrued liabilities | 122,335 | 120,180 | ' | ' | ||
Liabilities related to assets held for sale | 0 | 176 | ' | ' | ||
Current maturities of long-term debt | 13,310 | 8,501 | ' | ' | ||
Current liabilities | 224,057 | 220,936 | ' | ' | ||
Long-term debt | 1,235,167 | 1,248,458 | ' | ' | ||
Other long-term liabilities | 56,599 | 61,223 | ' | ' | ||
Liabilities and Equity | 1,098,552 | 1,208,931 | ' | ' | ||
VERSO PAPER HOLDINGS LLC | ' | ' | ' | ' | ||
ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | 11,240 | 61,470 | 94,795 | 152,706 | ||
Accounts receivable, net | 104,624 | 101,014 | ' | ' | ||
Inventories | 137,687 | 131,467 | ' | ' | ||
Assets held for sale | 50 | 24,867 | ' | ' | ||
Prepaid expenses and other assets | 20,621 | 3,996 | ' | ' | ||
Current assets | 274,222 | 322,814 | ' | ' | ||
Property, plant, and equipment, net | 742,946 | 793,031 | ' | ' | ||
Intangibles and other assets, net(1) | 104,760 | [1] | 116,432 | [1] | ' | ' |
Total assets | 1,121,928 | 1,232,277 | ' | ' | ||
LIABILITIES AND MEMBER'S EQUITY | ' | ' | ' | ' | ||
Accounts payable | 88,412 | 92,079 | ' | ' | ||
Accrued liabilities | 122,435 | 119,121 | ' | ' | ||
Liabilities related to assets held for sale | 0 | 176 | ' | ' | ||
Current maturities of long-term debt | 13,310 | 0 | ' | ' | ||
Current liabilities | 224,157 | 211,376 | ' | ' | ||
Long-term debt | 1,258,472 | [2] | 1,187,052 | [2] | ' | ' |
Other long-term liabilities | 50,425 | 54,448 | ' | ' | ||
Member's (deficit) equity | -411,126 | -220,599 | -61,184 | 71,417 | ||
Liabilities and Equity | 1,121,928 | 1,232,277 | ' | ' | ||
VERSO PAPER HOLDINGS LLC | Parent Issuer | ' | ' | ' | ' | ||
ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | 0 | 0 | ' | ' | ||
Intercompany/affiliate receivable | 1,335,323 | 1,251,788 | ' | ' | ||
Investment in subsidiaries | -439,125 | -253,714 | ' | ' | ||
Total assets | 896,198 | 998,074 | ' | ' | ||
LIABILITIES AND MEMBER'S EQUITY | ' | ' | ' | ' | ||
Accrued liabilities | 58,847 | 54,926 | ' | ' | ||
Current maturities of long-term debt | 13,310 | ' | ' | ' | ||
Current liabilities | 72,157 | 54,926 | ' | ' | ||
Long-term debt | 1,235,167 | [2] | 1,163,747 | [2] | ' | ' |
Member's (deficit) equity | -411,126 | -220,599 | ' | ' | ||
Liabilities and Equity | 896,198 | 998,074 | ' | ' | ||
VERSO PAPER HOLDINGS LLC | Guarantor Subsidiaries | ' | ' | ' | ' | ||
ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | 11,230 | 61,453 | 94,722 | 152,702 | ||
Accounts receivable, net | 104,624 | 101,014 | ' | ' | ||
Inventories | 137,687 | 131,467 | ' | ' | ||
Assets held for sale | 50 | 24,867 | ' | ' | ||
Prepaid expenses and other assets | 20,616 | 3,989 | ' | ' | ||
Current assets | 274,207 | 322,790 | ' | ' | ||
Property, plant, and equipment, net | 724,063 | 773,074 | ' | ' | ||
Intercompany/affiliate receivable | 1,393 | 1,401 | ' | ' | ||
Investment in subsidiaries | -12,124 | -11,183 | ' | ' | ||
Intangibles and other assets, net(1) | 103,424 | [1] | 115,222 | [1] | ' | ' |
Total assets | 1,090,963 | 1,201,304 | ' | ' | ||
LIABILITIES AND MEMBER'S EQUITY | ' | ' | ' | ' | ||
Accounts payable | 88,397 | 92,056 | ' | ' | ||
Accrued liabilities | 63,462 | 64,069 | ' | ' | ||
Liabilities related to assets held for sale | ' | 176 | ' | ' | ||
Current liabilities | 151,859 | 156,301 | ' | ' | ||
Loan from Verso Paper Finance Holdings LLC | 1,335,323 | 1,251,788 | ' | ' | ||
Other long-term liabilities | 42,502 | 46,525 | ' | ' | ||
Member's (deficit) equity | -438,721 | -253,310 | ' | ' | ||
Liabilities and Equity | 1,090,963 | 1,201,304 | ' | ' | ||
VERSO PAPER HOLDINGS LLC | Non-Guarantor Subsidiary | ' | ' | ' | ' | ||
ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | 0 | ' | 0 | ' | ||
Property, plant, and equipment, net | 19,171 | 20,246 | ' | ' | ||
Intangibles and other assets, net(1) | 1,251 | [1] | 1,125 | [1] | ' | ' |
Total assets | 20,422 | 21,371 | ' | ' | ||
LIABILITIES AND MEMBER'S EQUITY | ' | ' | ' | ' | ||
Accounts payable | 7 | 7 | ' | ' | ||
Current liabilities | 7 | 7 | ' | ' | ||
Loan from Verso Paper Finance Holdings LLC | 32,539 | 32,547 | ' | ' | ||
Member's (deficit) equity | -12,124 | -11,183 | ' | ' | ||
Liabilities and Equity | 20,422 | 21,371 | ' | ' | ||
VERSO PAPER HOLDINGS LLC | Non-Guarantor Affiliate | ' | ' | ' | ' | ||
ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | 10 | 17 | 73 | 4 | ||
Prepaid expenses and other assets | 5 | 7 | ' | ' | ||
Current assets | 15 | 24 | ' | ' | ||
Intercompany/affiliate receivable | 31,153 | 31,153 | ' | ' | ||
Intangibles and other assets, net(1) | 85 | [1] | 85 | [1] | ' | ' |
Total assets | 31,253 | 31,262 | ' | ' | ||
LIABILITIES AND MEMBER'S EQUITY | ' | ' | ' | ' | ||
Accounts payable | 15 | 23 | ' | ' | ||
Accrued liabilities | 126 | 126 | ' | ' | ||
Current liabilities | 141 | 149 | ' | ' | ||
Long-term debt | 23,305 | [2] | 23,305 | [2] | ' | ' |
Other long-term liabilities | 8,087 | 8,032 | ' | ' | ||
Member's (deficit) equity | -280 | -224 | ' | ' | ||
Liabilities and Equity | 31,253 | 31,262 | ' | ' | ||
VERSO PAPER HOLDINGS LLC | Eliminations | ' | ' | ' | ' | ||
ASSETS | ' | ' | ' | ' | ||
Property, plant, and equipment, net | -288 | -289 | ' | ' | ||
Intercompany/affiliate receivable | -1,367,869 | -1,284,342 | ' | ' | ||
Investment in subsidiaries | 451,249 | 264,897 | ' | ' | ||
Total assets | -916,908 | -1,019,734 | ' | ' | ||
LIABILITIES AND MEMBER'S EQUITY | ' | ' | ' | ' | ||
Accounts payable | -7 | -7 | ' | ' | ||
Current liabilities | -7 | -7 | ' | ' | ||
Loan from Verso Paper Finance Holdings LLC | -1,367,862 | -1,284,335 | ' | ' | ||
Other long-term liabilities | -164 | -109 | ' | ' | ||
Member's (deficit) equity | 451,125 | 264,717 | ' | ' | ||
Liabilities and Equity | ($916,908) | ($1,019,734) | ' | ' | ||
[1] | Intangibles and other assets, net of Guarantor Subsidiaries includes $23.3 million of a long-term note receivable from Verso Finance. | |||||
[2] | Long-term debt of Non-Guarantor Affiliate is payable to Verso Finance. |
Condensed_Consolidating_Balanc1
Condensed Consolidating Balance Sheet (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Verso Paper Finance Holdings LLC | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Long-term note receivable | $23,305 | $23,305 |
Verso Paper Holdings Limited Liability Company [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Long-term note receivable | 23,305 | 23,305 |
Guarantor Subsidiaries | Verso Paper Holdings Limited Liability Company [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Long-term note receivable | $23,305 | $23,305 |
Condensed_Consolidating_Statem
Condensed Consolidating Statements of Operations and Comprehensive Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 27 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | ||||||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | $350,400 | $374,900 | $330,400 | $333,200 | $361,000 | $373,000 | $365,300 | $375,300 | $1,388,899 | $1,474,612 | $1,722,489 | ' | ||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | ' | ' | ' | ' | ' | ' | ' | ' | 1,179,085 | 1,272,630 | 1,460,290 | ' | ||||||||
Depreciation, amortization, and depletion | ' | ' | ' | ' | ' | ' | ' | ' | 104,730 | 118,178 | 125,295 | ' | ||||||||
Selling, general, and administrative expenses | 17,800 | 18,000 | 19,200 | 18,800 | 18,200 | 17,500 | 19,900 | 18,800 | 73,777 | 74,415 | 78,059 | ' | ||||||||
Goodwill impairment | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 18,695 | ' | ||||||||
Restructuring charges | 100 | [1] | 100 | [1] | 200 | [1] | 1,000 | [1] | 5,400 | [1] | 97,000 | [1] | -100 | [1] | 100 | [1] | 1,378 | 102,404 | 24,464 | 128,246 |
Other operating income | 0 | [2] | 0 | [2] | -700 | [2] | -3,300 | [2] | 60,600 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | -3,971 | -60,594 | 0 | ' |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | -25 | -8 | -99 | ' | ||||||||
Interest expense | 34,300 | 34,400 | 34,400 | 34,700 | 36,800 | 33,200 | 33,300 | 32,100 | 137,728 | 135,461 | 126,607 | ' | ||||||||
Other (income) loss, net | -5,100 | -100 | -100 | -2,600 | 100 | 0 | 22,100 | -29,600 | 7,965 | 7,379 | 26,042 | ' | ||||||||
Net loss | -20,000 | -9,800 | -43,000 | -38,400 | 25,500 | -104,700 | -20,700 | -73,900 | -111,206 | -173,829 | -137,061 | ' | ||||||||
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 13,838 | 3,385 | -12,404 | ' | ||||||||
Comprehensive loss | ' | ' | ' | ' | ' | ' | ' | ' | -97,368 | -170,444 | -149,465 | ' | ||||||||
VERSO PAPER HOLDINGS LLC | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,388,899 | 1,474,612 | 1,722,489 | ' | ||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | ' | ' | ' | ' | ' | ' | ' | ' | 1,179,085 | 1,272,630 | 1,460,290 | ' | ||||||||
Depreciation, amortization, and depletion | ' | ' | ' | ' | ' | ' | ' | ' | 104,730 | 118,178 | 125,295 | ' | ||||||||
Selling, general, and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | 73,777 | 74,364 | 78,007 | ' | ||||||||
Goodwill impairment | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 10,551 | ' | ||||||||
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | ' | 1,378 | 102,404 | 24,464 | ' | ||||||||
Other operating income | ' | ' | ' | ' | ' | ' | ' | ' | -3,971 | -60,594 | ' | ' | ||||||||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | -1,539 | -1,523 | -1,614 | ' | ||||||||
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 138,626 | 127,943 | 122,213 | ' | ||||||||
Other (income) loss, net | ' | ' | ' | ' | ' | ' | ' | ' | 7,965 | 7,380 | 25,812 | ' | ||||||||
Equity in net loss of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ||||||||
Net loss | ' | ' | ' | ' | ' | ' | ' | ' | -111,152 | -166,170 | -122,529 | ' | ||||||||
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 13,838 | 3,385 | -12,404 | ' | ||||||||
Comprehensive loss | ' | ' | ' | ' | ' | ' | ' | ' | -97,314 | -162,785 | -134,933 | ' | ||||||||
VERSO PAPER HOLDINGS LLC | Parent Issuer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Depreciation, amortization, and depletion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Selling, general, and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Goodwill impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | -138,298 | -129,801 | -124,366 | ' | ||||||||
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 138,298 | 129,801 | 124,366 | ' | ||||||||
Other (income) loss, net | ' | ' | ' | ' | ' | ' | ' | ' | 2,800 | 8,244 | 26,091 | ' | ||||||||
Equity in net loss of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -108,352 | -157,926 | -96,438 | ' | ||||||||
Net loss | ' | ' | ' | ' | ' | ' | ' | ' | -111,152 | -166,170 | -122,529 | ' | ||||||||
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 13,838 | 3,385 | -12,404 | ' | ||||||||
Comprehensive loss | ' | ' | ' | ' | ' | ' | ' | ' | -97,314 | -162,785 | -134,933 | ' | ||||||||
VERSO PAPER HOLDINGS LLC | Guarantor Subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,388,899 | 1,474,612 | 1,722,489 | ' | ||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | ' | ' | ' | ' | ' | ' | ' | ' | 1,179,085 | 1,272,630 | 1,460,290 | ' | ||||||||
Depreciation, amortization, and depletion | ' | ' | ' | ' | ' | ' | ' | ' | 103,655 | 117,014 | 125,121 | ' | ||||||||
Selling, general, and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | 75,452 | 76,039 | 78,038 | ' | ||||||||
Goodwill impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,551 | ' | ||||||||
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | ' | 1,378 | 102,404 | 24,464 | ' | ||||||||
Other operating income | ' | ' | ' | ' | ' | ' | ' | ' | -3,971 | -60,594 | ' | ' | ||||||||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | -1,539 | -1,523 | -1,560 | ' | ||||||||
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 137,083 | 126,399 | 121,883 | ' | ||||||||
Other (income) loss, net | ' | ' | ' | ' | ' | ' | ' | ' | 5,165 | -864 | -279 | ' | ||||||||
Equity in net loss of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Net loss | ' | ' | ' | ' | ' | ' | ' | ' | -107,409 | -156,893 | -96,019 | ' | ||||||||
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 13,838 | 3,385 | -12,404 | ' | ||||||||
Comprehensive loss | ' | ' | ' | ' | ' | ' | ' | ' | -93,571 | -153,508 | -108,423 | ' | ||||||||
VERSO PAPER HOLDINGS LLC | Non-Guarantor Subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Depreciation, amortization, and depletion | ' | ' | ' | ' | ' | ' | ' | ' | 1,075 | 1,164 | 174 | ' | ||||||||
Selling, general, and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | -1,707 | -1,707 | -156 | ' | ||||||||
Goodwill impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -54 | ' | ||||||||
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 1,574 | 1,575 | 361 | ' | ||||||||
Other (income) loss, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Equity in net loss of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Net loss | ' | ' | ' | ' | ' | ' | ' | ' | -942 | -1,032 | -325 | ' | ||||||||
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Comprehensive loss | ' | ' | ' | ' | ' | ' | ' | ' | -942 | -1,032 | -325 | ' | ||||||||
VERSO PAPER HOLDINGS LLC | Non-Guarantor Affiliate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Depreciation, amortization, and depletion | ' | ' | ' | ' | ' | ' | ' | ' | 55 | 55 | 55 | ' | ||||||||
Selling, general, and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | 32 | 32 | 125 | ' | ||||||||
Goodwill impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | -1,546 | -1,546 | -1,546 | ' | ||||||||
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 1,515 | 1,515 | 1,515 | ' | ||||||||
Other (income) loss, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Equity in net loss of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Net loss | ' | ' | ' | ' | ' | ' | ' | ' | -56 | -56 | -149 | ' | ||||||||
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Comprehensive loss | ' | ' | ' | ' | ' | ' | ' | ' | -56 | -56 | -149 | ' | ||||||||
VERSO PAPER HOLDINGS LLC | Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Depreciation, amortization, and depletion | ' | ' | ' | ' | ' | ' | ' | ' | -55 | -55 | -55 | ' | ||||||||
Selling, general, and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Goodwill impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 139,844 | 131,347 | 125,912 | ' | ||||||||
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -139,844 | -131,347 | -125,912 | ' | ||||||||
Other (income) loss, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ||||||||
Equity in net loss of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 108,352 | 157,926 | 96,438 | ' | ||||||||
Net loss | ' | ' | ' | ' | ' | ' | ' | ' | 108,407 | 157,981 | 96,493 | ' | ||||||||
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -13,838 | -3,385 | 12,404 | ' | ||||||||
Comprehensive loss | ' | ' | ' | ' | ' | ' | ' | ' | $94,569 | $154,596 | $108,897 | ' | ||||||||
[1] | Represents costs primarily associated with the closure of the former Sartell mill in 2012 | |||||||||||||||||||
[2] | Represents gain on sale of the former Sartell mill and Fiber Farm LLC in 2013 and gain on insurance settlement resulting from the fire at the former Sartell mill in 2012. |
Condensed_Consolidating_Statem1
Condensed Consolidating Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net cash provided by operating activities | ($27,732) | $12,008 | $14,511 |
Cash Flows From Investing Activities: | ' | ' | ' |
Proceeds from insurance settlement | 0 | 51,003 | 0 |
Proceeds from sale of assets | 28,397 | 1,731 | 228 |
Transfers to (from) restricted cash | -1,492 | 106 | 23,839 |
Capital expenditures | -40,660 | -59,909 | -90,272 |
Net cash used in investing activities | -13,755 | -7,069 | -66,205 |
Cash Flows From Financing Activities: | ' | ' | ' |
Borrowings on revolving credit facilities | 145,000 | 112,500 | 0 |
Payments on revolving credit facilities | -145,000 | -112,500 | 0 |
Proceeds from long-term debt | 0 | -341,191 | -394,618 |
Repayments of long-term debt | -8,501 | -354,984 | -389,998 |
Debt issuance costs | -220 | -24,459 | -10,800 |
Net cash provided by financing activities | -8,743 | -38,283 | -6,217 |
Change in cash and cash equivalents | -50,230 | -33,344 | -57,911 |
Cash and cash equivalents at beginning of period | 61,525 | 94,869 | 152,780 |
Cash and cash equivalents at end of period | 11,295 | 61,525 | 94,869 |
VERSO PAPER HOLDINGS LLC | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net cash provided by operating activities | -27,462 | 11,302 | 14,562 |
Cash Flows From Investing Activities: | ' | ' | ' |
Proceeds from insurance settlement | 0 | 51,003 | 0 |
Proceeds from sale of assets | 28,397 | 1,731 | 228 |
Transfers to (from) restricted cash | -1,492 | 106 | 23,839 |
Capital expenditures | -40,660 | -59,909 | -90,272 |
Net cash used in investing activities | -13,755 | -7,069 | -66,205 |
Cash Flows From Financing Activities: | ' | ' | ' |
Borrowings on revolving credit facilities | 145,000 | 112,500 | 0 |
Payments on revolving credit facilities | -145,000 | -112,500 | 0 |
Return of capital | -8,653 | 0 | 0 |
Contribution from parent | 0 | 776 | 0 |
Proceeds from long-term debt | 0 | -341,191 | -394,618 |
Repayments of long-term debt | 0 | -354,984 | -389,998 |
Debt issuance costs | -220 | -24,459 | -10,800 |
Cash distributions | -140 | -82 | -88 |
Net cash provided by financing activities | -9,013 | -37,558 | -6,268 |
Change in cash and cash equivalents | -50,230 | -33,325 | -57,911 |
Cash and cash equivalents at beginning of period | 61,470 | 94,795 | 152,706 |
Cash and cash equivalents at end of period | 11,240 | 61,470 | 94,795 |
VERSO PAPER HOLDINGS LLC | Parent Issuer | ' | ' | ' |
Cash Flows From Investing Activities: | ' | ' | ' |
Return of investment in subsidiaries | 140 | ' | 88 |
Net cash used in investing activities | 140 | -694 | 88 |
Cash Flows From Financing Activities: | ' | ' | ' |
Borrowings on revolving credit facilities | 145,000 | 112,500 | ' |
Payments on revolving credit facilities | -145,000 | -112,500 | ' |
Return of capital | -8,653 | ' | ' |
Proceeds from long-term debt | ' | -341,191 | -394,618 |
Repayments of long-term debt | ' | -354,984 | -389,998 |
Debt issuance costs | -220 | ' | -10,715 |
Cash distributions | -140 | -82 | 88 |
Repayment of advances to subsidiaries | 8,653 | 354,984 | 389,998 |
Advances to subsidiaries | 220 | -316,732 | -383,903 |
Net cash provided by financing activities | -140 | ' | -88 |
Cash and cash equivalents at beginning of period | 0 | ' | ' |
Cash and cash equivalents at end of period | 0 | 0 | ' |
VERSO PAPER HOLDINGS LLC | Guarantor Subsidiaries | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net cash provided by operating activities | -27,609 | 9,449 | 18,815 |
Cash Flows From Investing Activities: | ' | ' | ' |
Proceeds from insurance settlement | ' | 51,003 | ' |
Proceeds from sale of assets | 28,397 | 1,731 | 228 |
Transfers to (from) restricted cash | -1,338 | 184 | -975 |
Return of investment in subsidiaries | -140 | 694 | -88 |
Capital expenditures | -40,660 | -68,585 | -69,866 |
Net cash used in investing activities | -13,741 | -14,973 | -70,701 |
Cash Flows From Financing Activities: | ' | ' | ' |
Return of capital | 0 | ' | ' |
Debt issuance costs | ' | ' | 1 |
Cash distributions | ' | 10,507 | ' |
Repayment of advances to subsidiaries | -8,653 | -354,984 | -389,998 |
Advances to subsidiaries | -220 | 316,732 | 383,903 |
Net cash provided by financing activities | -8,873 | ' | -6,094 |
Change in cash and cash equivalents | -50,223 | ' | -57,980 |
Cash and cash equivalents at beginning of period | 61,453 | 94,722 | 152,702 |
Cash and cash equivalents at end of period | 11,230 | 61,453 | 94,722 |
VERSO PAPER HOLDINGS LLC | Non-Guarantor Subsidiary | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net cash provided by operating activities | 154 | 1,909 | -4,322 |
Cash Flows From Investing Activities: | ' | ' | ' |
Transfers to (from) restricted cash | -154 | -78 | 24,814 |
Capital expenditures | ' | ' | -20,406 |
Net cash used in investing activities | -154 | 8,598 | 4,408 |
Cash Flows From Financing Activities: | ' | ' | ' |
Return of capital | 0 | ' | ' |
Debt issuance costs | ' | ' | -86 |
Cash distributions | ' | -10,507 | ' |
Net cash provided by financing activities | 0 | ' | -86 |
Cash and cash equivalents at beginning of period | ' | 0 | ' |
Cash and cash equivalents at end of period | 0 | ' | 0 |
VERSO PAPER HOLDINGS LLC | Non-Guarantor Affiliate | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net cash provided by operating activities | -7 | -56 | 69 |
Cash Flows From Investing Activities: | ' | ' | ' |
Net cash used in investing activities | 0 | ' | ' |
Cash Flows From Financing Activities: | ' | ' | ' |
Return of capital | 0 | ' | ' |
Net cash provided by financing activities | 0 | ' | ' |
Change in cash and cash equivalents | -7 | ' | 69 |
Cash and cash equivalents at beginning of period | 17 | 73 | 4 |
Cash and cash equivalents at end of period | $10 | $17 | $73 |
Quarterly_Data_Detail
Quarterly Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 27 Months Ended | |||||||||||||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | $350,400,000 | $374,900,000 | $330,400,000 | $333,200,000 | $361,000,000 | $373,000,000 | $365,300,000 | $375,300,000 | $1,388,899,000 | $1,474,612,000 | $1,722,489,000 | ' | ||||||||
Gross margin | 62,800,000 | [1] | 69,100,000 | [1] | 36,500,000 | [1] | 41,400,000 | [1] | 50,800,000 | [1] | 71,100,000 | [1] | 42,100,000 | [1] | 38,000,000 | [1] | ' | ' | ' | ' |
Cost of products sold | 313,700,000 | 332,100,000 | 320,200,000 | 317,800,000 | 337,100,000 | 330,000,000 | 355,000,000 | 368,700,000 | ' | ' | ' | ' | ||||||||
Selling, general, and administrative expenses | 17,800,000 | 18,000,000 | 19,200,000 | 18,800,000 | 18,200,000 | 17,500,000 | 19,900,000 | 18,800,000 | 73,777,000 | 74,415,000 | 78,059,000 | ' | ||||||||
Restructuring charges | 100,000 | [2] | 100,000 | [2] | 200,000 | [2] | 1,000,000 | [2] | 5,400,000 | [2] | 97,000,000 | [2] | -100,000 | [2] | 100,000 | [2] | 1,378,000 | 102,404,000 | 24,464,000 | 128,246,000 |
Other operating income | 0 | [3] | 0 | [3] | -700,000 | [3] | -3,300,000 | [3] | 60,600,000 | [3] | 0 | [3] | 0 | [3] | 0 | [3] | -3,971,000 | -60,594,000 | 0 | ' |
Interest expense | 34,300,000 | 34,400,000 | 34,400,000 | 34,700,000 | 36,800,000 | 33,200,000 | 33,300,000 | 32,100,000 | 137,728,000 | 135,461,000 | 126,607,000 | ' | ||||||||
Other (income) loss, net | 5,100,000 | 100,000 | 100,000 | 2,600,000 | -100,000 | 0 | -22,100,000 | 29,600,000 | -7,965,000 | -7,379,000 | -26,042,000 | ' | ||||||||
Income tax (benefit) expense | -600,000 | 0 | 0 | 0 | -1,300,000 | 0 | 0 | -100,000 | -562,000 | -1,424,000 | 197,000 | ' | ||||||||
Net income (loss) | ($20,000,000) | ($9,800,000) | ($43,000,000) | ($38,400,000) | $25,500,000 | ($104,700,000) | ($20,700,000) | ($73,900,000) | ($111,206,000) | ($173,829,000) | ($137,061,000) | ' | ||||||||
Earnings (loss) per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Basic (usd per share) | ($0.38) | [4] | ($0.18) | [4] | ($0.81) | [4] | ($0.72) | [4] | $0.48 | [4] | ($1.98) | [4] | ($0.39) | [4] | ($1.40) | [4] | ($2.09) | ($3.29) | ($2.61) | ' |
Diluted (usd per share) | ($0.38) | [4] | ($0.18) | [4] | ($0.81) | [4] | ($0.72) | [4] | $0.48 | [4] | ($1.98) | [4] | ($0.39) | [4] | ($1.40) | [4] | ($2.09) | ($3.29) | ($2.61) | ' |
Weighted average shares of common stock outstanding: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Basic (in shares) | 53,172 | [4] | 53,172 | [4] | 53,172 | [4] | 52,976 | [4] | 52,896 | [4] | 52,907 | [4] | 52,908 | [4] | 52,686 | [4] | 53,124 | 52,850 | 52,595 | ' |
Diluted (in shares) | 53,172 | [4] | 53,172 | [4] | 53,172 | [4] | 52,976 | [4] | 52,913 | [4] | 52,907 | [4] | 52,908 | [4] | 52,686 | [4] | 53,124 | 52,850 | 52,595 | ' |
Closing price per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
High | $0.85 | $1.13 | $1.29 | $1.65 | $1.67 | $2 | $1.80 | $2.50 | ' | ' | ' | ' | ||||||||
Low | $0.54 | $0.62 | $1.03 | $0.98 | $1.01 | $1.17 | $1.08 | $0.97 | ' | ' | ' | ' | ||||||||
Period-end | $0.63 | $0.76 | $1.15 | $1.32 | $1.07 | $1.60 | $1.18 | $1.88 | ' | ' | ' | ' | ||||||||
[1] | Gross margin represents net sales less cost of products sold, excluding depreciation, amortization, and depletion. | |||||||||||||||||||
[2] | Represents costs primarily associated with the closure of the former Sartell mill in 2012 | |||||||||||||||||||
[3] | Represents gain on sale of the former Sartell mill and Fiber Farm LLC in 2013 and gain on insurance settlement resulting from the fire at the former Sartell mill in 2012. | |||||||||||||||||||
[4] | No dividends were declared or paid in any of the periods presented. |
QUARTERLY_DATA_Parenthetical_D
QUARTERLY DATA (Parenthetical) (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 |
Dividend declared | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends Payable | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Dividend paid | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends Payable | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
SUBSEQUENT_EVENT_Merger_Detail
SUBSEQUENT EVENT (Merger) (Details) (USD $) | Dec. 31, 2013 | Jan. 03, 2014 | Jan. 03, 2014 | Feb. 28, 2014 | Feb. 14, 2014 | Jan. 03, 2014 | Jan. 03, 2014 | Jan. 03, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 13, 2014 | Dec. 31, 2013 | Jan. 13, 2014 | |||
Subsequent Event | Subsequent Event | Subsequent Event | Stockholders of New Page Holding Inc. | New First Lien Notes | Maximum | Maximum | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | |||||
New Page Holding Inc. | Bucksport Energy LLC [Member] | Subsequent Event | 11.75% Senior Secured Notes | Subsequent Event | Subsequent Event | 11.75% Senior Secured Notes | 8.75% Second Priority Senior Secured Notes | 8.75% Second Priority Senior Secured Notes | 11.38% Senior Subordinated Notes | 11.38% Senior Subordinated Notes | ||||||
subsidiary | New Page Holding Inc. | Subsequent Event | New Page Holding Inc. | Subsequent Event | Subsequent Event | |||||||||||
New Page Holding Inc. | New Page Holding Inc. | |||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Payment to acquire business as per the agreement | ' | ' | $250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Amount paid from to the shareholders | ' | ' | ' | ' | 243,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Principle amount of New First Lien Notes | ' | ' | ' | ' | ' | 650,000,000 | ' | ' | ' | ' | ' | ' | ' | |||
Percentage representing the sum of outstanding shares of Verso common stock as of immediately prior to closing and the shares | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Potential upward adjustment | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | |||
Downward adjustment | ' | ' | ' | ' | ' | ' | ' | $27,000,000 | ' | ' | ' | ' | ' | |||
Monthly incremental in merger consideration, delay in the Merger due to Verso | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total amount of Verso common stock issued in the Merger Consideration, percentage | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | |||
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | 11.75% | [1] | 8.75% | [2] | 8.75% | [2] | 11.38% | 11.38% |
Ownership of steam and electricity produced | 28.00% | ' | ' | 72.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of Subsidiaries | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | Par value of $417,882 on DecemberB 31, 2013 and $345,000 on DecemberB 31, 2012 | |||||||||||||||
[2] | Par value of $396,000 on DecemberB 31, 2013 and 2012. |
Recovered_Sheet16
Schedule II - Valuation accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Period | $1,006 | $908 | $785 |
Charged to Cost and Expenses | 263 | 98 | 156 |
Charge-off Against Allowances | -526 | 0 | -33 |
Balance at End of Period | $743 | $1,006 | $908 |